Jefferies Financial Group Annual Report 2021

Plain-text annual report

1 Report Proﬁle2 Contents Report Proﬁle Overview About JD.com Message from Chairman of Board of Directors Highlights of Responsibility Performance in Key Areas Statement from the Board ESG Governance Structure Sustainable Development Strategic Framework Materiality Assessment and Stakeholder Engagement Leading the Sustainable Future as a New Type of Economy Enterprise Unleash the Great Growth Potential with JD as a Real Economy Enterprise ’ s Identity Compliance Governance to Achieve More Sustainable and Steady Development and Growth JD Social Value Proposition Demonstrated as a New Type Real Economy Enterprise Promoting Good Consumption Product Responsibility and Content Management Consumer Rights and Service Management Promoting High-quality Development Supplier Management Promoting the Development of the Real Economy Cultivating Talents High-quality Employment Human Resource Compliance Management Human Resources Management 01 02 03 05 08 08 10 11 15 16 24 27 32 41 43 55 56 58 Safeguarding the Natural Environment Green Operation Low-Carbon Supply Chain JD.com Singles Day Grand Promotion Leads Sustainable Consumption 65 69 72 Promoting Inclusive Development of the Society Public Welfare Concept and Policy The Focus Areas of Philanthropic Eﬀorts Thematic Report on Climate-related Financial Information Disclosures Governance Strategy Risk Management Metrics and Targets About the Report Key Performance ’ JD s Progress on the United Nations Global Compact United Nations Sustainable Development Goals (SDGs) Response ESG-Related Honors and Social Recognition HKEX Content Index GRI Standards Content Index External Veriﬁcation Statement 75 75 83 83 91 91 95 100 101 102 103 105 107 2021 JD.com Environmental, Social and Governance Report 01 Report Proﬁle Release Form of the Report Overview About JD.com 02 This Environmental, Social and Governance (hereinafter referred to as “ ” ESG ) report is presented in electronic version and available in Chinese and English. However, in case of conﬂicts between the two languages, the Chinese version shall take precedence. Reference and Principles JD.com oﬃcially set foot in the ﬁeld of e-commerce in 2004. In JD.com is a new type of real economy enterprise with both May 2014, JD.com was listed on the NASDAQ Stock Exchange the genes and advantages of traditional enterprises and in the United States. In doing so, JD.com became the ﬁrst digital technology capabilities. As such, JD has facilitated the comprehensive e-commerce platform in China to go public development of various real economy businesses and boosted in the United States. In June 2020, JD.com took a secondary high-quality development of the real economy with solid and listing on the Hong Kong Stock Exchange, aiming to raise funds innovative development experience to promote sustainable to invest in key technological innovations applied in supply growth. chain infrastructure, enhance user experience further, and The report is prepared in compliance with the ESG Reporting Guide from the Hong Kong Stock Exchange (HKEX), the ESG Reporting improve operational eﬃciency. JD.com adheres to the values of Customer First, Integrity, JD.com is positioned as “ a technology and services ” Collaboration, Gratitude, Dedication and Ownership, fulﬁlling its strategic mission of being Powered by Technology for “ ” enterprise with supply chain at its core. Its businesses cover a More Productive and Sustainable World and striving to retail, technologies, logistics, health, insurance, property become the most trusted company in the world. development, international business, and other areas. Guide from the Nasdaq Stock Market, the United Nations Sustainable Development Goals (SDGs), the GRI Standards issued by the Global Sustainability Standards Board (GSSB), the Ten Principles of the UN Global Compact, and industry standards issued by the Sustainability Accounting Standards Board (SASB). In particular, the relevant contents of dealing with climate change are prepared by referring to the HKEX Guidelines on Climate Information Disclosure and the framework suggested by the Task Force on Climate-related Financial Disclosures (TCFD). Source of Information ’ The information and data in this report mainly come from the company s internal data collection system, work reports and public information, annual reports, and media releases. Unless speciﬁed, the monetary amounts shown in this report are all presented in “ ” “ ” “ ” “ ” “ ” JD, the Group, the company, and we all refer to JD.com. RMB. For ease of presentation, Reporting Scope This report covers the period from January 1, 2021, to December 31, 2021, focusing on the ESG performance of JD.com. Some contents have been reviewed and extended to maintain the continuity and integrity of information. Contact Us We value your feedback and opinions, and appreciate you emailing us at ir@jd.com, or mailing a letter to JD.com at Floor 20, Building A, ’ No. 18 Kechuang 11 Street, Beijing Economic-Technological Development Area, Beijing, 100176, the People s Republic of China. For more information, please visit our oﬃcial website at www.jd.com. Overview2021 JD.com Environmental, Social and Governance Report 03 04 Message from Chairman of Board of Directors Leading the Sustainable Future as a New Type of Real Economy Enterprise In 2021 the COVID-19 pandemic continued. As a result, the global economy faced various downward pressures during a diﬃcult and slow process toward recovery. We have witnessed ’ epidemic s impact on the world economy, society, and environment, and deeply felt the pressure brought by many uncertainties. Amid these changes and challenges, we must hold ourselves accountable for promoting sustainability and undertaking corporate social responsibility. In JD.com ’ s vessel, there ﬂows a sense of mission and responsibility. Starting from a three-foot counter in Zhongguancun Electronics Market 19 years ago, we have always relied on genuine licensed goods, never deviated from the concept of achieving success the right way, and have “ ” never forgotten our responsibility to all stakeholders. In 2021, based on the corporate mission, Powered by Technology for a More Productive and Sustainable World, we reﬂected further “ ” on the scope of our goals. As an enterprise with both the genes and attributes of a real economy enterprise and possessing digital technologies and capabilities, we commit to leading a sustainable future in the role of a new type real economy enterprise. Empowering Real Economy Businesses with Digitally Intelligent Supply Chain Solutions In the past year, under continual COVID-19 outbreaks, many In the past few years, we have ﬁrmly invested in supply chain small and medium-sized enterprises have been under pressure. infrastructure construction and digital intelligent technology In contrast, real economy enterprises need to reduce costs and research and development, a path that has at times been increase eﬃciency as they pursue high-quality development. bitter and challenging but will also deliver the highest value. Yet, despite all these complex challenges, we are working We are glad to see that our persistence has enabled partners together with our partners to overcome diﬃculties. to achieve high-quality development. We continue to improve To support businesses in areas impacted by the pandemic, we have voluntarily issued relief policies to help businesses reduce costs and increase eﬃciency. More importantly, during the epidemic outbreak, by relying on the intelligent supply chain and logistics, we have made our contributions to ensuring the supply of daily necessities to protect people s livelihood. As a ’ result, we have played a part in stabilizing commodity prices and enabling the normal operation of businesses, thus creating shared value for society as a whole. our intelligent supply chain technology and promote inventory turnover optimization. As a result, we have reduced the inventory turnover days to 30.3 days as of 2021 and accelerated the eﬃciency of the whole industry chain. We ve long been ’ investing in integrated supply chain logistics services, providing quick-response supply chain capability empowered by high technology and a ﬂexibly conﬁgured logistics service portfolio that many enterprises urgently need. Our intelligent manufacturing platform helps partners eﬃciently research and develop new products, signiﬁcantly shorten the time of product pre-market research, and accelerate the cycle of new goods, we will encourage more businesses and consumers to products going on the market, which helps manufacturers save join in low-carbon consumption actions. costs greatly. “ Our ﬁrst smart mobile warehouse ” was proved successful we have seen that more and more investors are concerned We are closely following the trend of green investment, and in the project of Hanzhong-Bazhong-Nanchong high- about climate risks. This year is our ﬁrst time incorporating speed railway construction, a pilot solution for engineering supplies real-time prediction, transportation, and warehouse ’ the topic of climate-related ﬁnancial information disclosure into this ESG report. We have comprehensively analyzed the management in remote areas. We serve nearly 70% of China s business risks and opportunities faced by JD.com in diﬀerent specialized and innovative enterprises, helping climate scenarios and formulated a risk management system “ ” Little Giant ’ more small and medium-sized enterprises to overcome the “ ” digital divide and achieve accelerated growth. We continue to increase investment in rural supply chain infrastructure and technology services, opening the whole and strategy for 2030. We hope that through systematic transformation, we will obtain new development opportunities while building climate competitiveness in the next decade. industrial chain in rural areas, and promoting rural revitalization been ranked on the FORTUNE 2022 World s Most Admired through comprehensive solutions. For example, we have Companies list at No.6 in the Internet Services and Retailing established the highest altitude smart warehouses nationwide Category and ﬁrst among Chinese enterprises for our social and cooperated with Wugong County in Shaanxi province to responsibility performance. Additionally, we rank third among We are honored to see our eﬀorts widely recognized. We have ’ build the ﬁrst intelligent supply chain center, beneﬁting rural Chinese enterprises in Forbes development with high-eﬃciency logistics. World. ’ 2021 Best Employers in the In addition, by enlarging the investment in “ new infrastructure These honors give us the momentum to go further. In the past abroad and combining global routes exploration and local year, we have had a lot of internal discussions and thoughts ” warehouse construction, we have set up a stable and eﬃcient on ESG. We are making ESG a top-down consistent guiding new infrastructure for businesses going abroad. Thus, reaching direction and evaluation mechanism through continuous more than 220 countries and regions worldwide, creating an institutional improvement. expressway for Chinese brands and services to go global. “ ” — When faced with the uncertainty of the future, we retain a sense of awe but we will always think and act as though we are experiencing day one. We will continue to strengthen the supply chain infrastructure construction and contribute our professional insights and innovative solutions to a better and and time will prove our original more sustainable future aspirations and beliefs. — Richard Qiangdong Liu Chairman of Board of Directors, JD.com Driving Green Transformation Throughout the Supply Chain According to the Global Risk Report 2022, the world ’ s top ﬁve most threatening risks in the next decade are all environmental risks. In 2021, we already felt the destructiveness of extreme weather to the supply chain. We hope to exert the inﬂuence of our value chain, and fully address the global climate challenge. We continue to accelerate our low-carbon operations. In 2021, all oﬃce buildings built by JD.com acquired three-star design mark certiﬁcations for green buildings. Using technologies such as liquid cooling, the new green data center operated by JD Cloud achieved annual operation with a Power Usage Eﬀectiveness (PUE) lower than 1.1. We lead the whole value chain to exert a low-carbon impact by facilitating the full deployment of new energy vehicles, promoting circular packaging, and building “ ” zero-carbon “ logistics parks. As ” announced in the new ﬁve-year Green Stream Initiative, we have promised to invest another RMB 1 billion in constructing a low-carbon integrated supply chain. We promote green consumption, and by expanding the categories of low-carbon 2021 JD.com Environmental, Social and Governance ReportOverview 05 06 Highlights of Responsibility Performance in Key Areas Boosting High-quality Development Leading the Sustainable Future as a New Type Real Economy Enterprise JD.com runs more than data centers, city clouds and nearly 70 70 100 edge data centers worldwide. data security, which apply to all businesses and suppliers. In 2021, JD.com continued implementing the “ Mantianxing Project in provinces, municipalities and autonomous regions to ’ In 2021, JD s anti-corruption training covered of the total employees. The participation rate of online anti-corruption training courses among new employees was as high as 98.8% 100% . JD.com made more than internal regulations, covering key areas such as security management, privacy protection and 60 Promoting Good Consumption In 2021, JD.com intercepted over 16 million illegal advertisements. By the end of 2021, JD Logistics operated over warehouses, which covered an aggregate gross ﬂoor area of over 24 nearly million 10 million square meters, including smart mega logistics parks in cities nationwide. On the basis of 1 of self-operated commodities, JD.com has always been a global leader in operational eﬃciency. SKUs 33 1,300 43 “ Asia No.1 ” 3,000 200 ’ ’ experiences. 167 In 2021, more than senior managers of JD Retail listened to users feedback on site. They helped solve pain front-line employees, of whom are from rural areas. In the past three years, nearly points and optimized more than items relating to users jobs have been provided to fresh graduates; at present, more than employees have doctorate degrees, and JD Cloud has provided digital solutions for more than large-scale enterprises and 1,500 1.5 million small and medium- sized enterprises (SMEs), facilitating digital transformation and upgrading traditional industry. JD.com has provided C2M solutions to more than 1,200 manufacturers. serve SMEs. As of now, JD.com has served more than provincial-level SMEs. 28 ” 27,000 provincial-level SMEs, accounting for almost of all 70% JD Industry launched a series of new-generation infrastructure for industrial supply chain management, such as enterprise 200 distribution centers, Jinggong Cabinet, and smart mobile warehouses. It has deployed over facilities nationwide to help solve the pain points faced by industrial enterprises. Cultivating Talents By the end of 2021, the number of employees in JD.com s listed and non-listed companies has exceeded ’ 420,000 , 300,000 including more than 40,000 the number of R&D professionals has exceeded 18,000 . 80% 500 In 2021, JD ’ s full-time employees received hours of training on average. 54.44 In 2021, the satisfaction survey conducted among employees in the Beijing headquarters and various workplaces showed that the employee satisfaction rate was as high as 4.36/5 . In 2021, the listed and non-listed companies under JD.com organized more than training sessions, and added 160 million 16,000 another training courses, with total course sign-ins of internal person-times and 20,809 A total of female employees beneﬁted from women-empowerment activities. There are female lecturers 851 49% of all lecturers. 10,262 daily active users. 10,368 1 SKU: Stock Keeping Unit registered at JD.com, accounting for 2021 JD.com Environmental, Social and Governance ReportOverview 07 08 Safeguarding the Natural Environment Statement from the Board carbon emissions. in the company s ESG management, further integration of In 2021, JD.com issued more than electronic invoices, thus saving about tons of paper, equivalent 2.8 billion 310,000 16,000 15,000 to the felling of over fewer adult trees and reducing carbon emissions by tons. In 2021, using technologies such as liquid cooling, the new green data center operated by JD Cloud achieved annual operation with 1.1 30% 10% a Power Usage Eﬀectiveness (PUE) lower than , the energy saving of in infrastructure, and a reduction in total By the end of 2021, circular packaging boxes had been put into regular use over 200 million times. Through the Green ” Stream Initiative, billion JD Logistics had driven the whole industry to reduce the amount of disposable packaging by nearly 200,000 hundreds of millions pieces. So far, more than businesses and of consumers “ 10 have been involved in the campaign for packaging reduction. JD Logistics launched new energy vehicles in more than cities nationwide. So far, the number of new energy logistics vehicles 20,000 400,000 has reached . This alone can reduce carbon dioxide emissions by about tons per year, equivalent to the annual carbon dioxide absorption of 20 million trees. 50 ’ JD.com s Board of Directors promises to strictly abide by the ESG strategy, the Board of Directors contributes to the requirements of the environmental, social and governance identiﬁcation of material ESG issues, assesses the eﬀects of (ESG) reporting guidelines of the stock exchanges where these identiﬁed issues, and takes them as essential references JD.com is listed, and continuously improve the ESG governance system. The year 2021 witnessed JD.com ’ s continued eﬀorts in strengthening the Board s participation and supervision ESG into the company s major decision-making and daily ’ management processes, and the Board s strategic support for ’ ’ ’ ’ for risk and opportunity evaluation. Meanwhile, the Board of ’ Directors follows the company s ESG governance structure. By collaborating with the Strategic Executive Committee (SEC), the Board supervises the fulﬁlment of ESG goals and targets, regularly reviews the progress of ESG work, and facilitates ESG governance to become a standard practice in the company. As a technology and services enterprise with the supply chain the company s business development and risk management. at its core, JD.com will give full play to the value creation of Through benchmarking analysis and stakeholder surveys, a new real economy enterprise in the future; continuously JD.com continuously identiﬁes the key ESG issues most fulﬁlling our mission to be Powered by Technology for a More relevant to shared value creation for stakeholders, industries, Productive and Sustainable World, and commit to being the “ ” ’ s most trusted global corporate citizen. and JD itself. To ensure the eﬀectiveness of the company ESG Governance Structure JD.com has established an ESG governance system applying such as regulatory authorities, investors, and the public, and ESG principles, which lays a solid foundation for ESG planning, further strengthen corporate governance. By implementing regular evaluation, and management of related risks. The ESG and continuously improving the ESG strategy and governance governance system can help JD.com manage environmental, system, JD.com will achieve the steady operation and societal, governance, and non-ﬁnancial risks more eﬀectively, sustainable growth and contribute to a more productive and maintain active engagement with multiple stakeholders sustainable world by leveraging its business strengths. Promoting Inclusive Development of the Society ” “ ’ had driven rural areas to realize an output value of RMB Benfu Plan s rural revitalization By the end of 2021, JD.com billion . 320 Decision-making In 2021, JD Foundation donated more than RMB million . During the “ ’ Children s Book Donation ” campaign, 67,608 ’ through JD.com ’ children s books were donated to provinces, municipalities and autonomous regions, JD.com and its partnering brands, donated a variety of products worth RMB s public welfare platform. Furthermore, the gamiﬁcation public welfare activity co-organized by 967,000 to SOS Children ’ s Village in China. 120 119 17 project sites in ” Fun Festival, “ ESG Governance Structure Board of Directors Instructs Reports Strategy Execution Committee Supervises Day-to-Day Reports ESG Task Force Coordinates and executes Day-to-Day Reports JD Health launched the “ Rare Diseases Care Program ” and established the “ JD Health Rare Diseases Care Fund ” together with the Beijing Illness Challenge Foundation (ICF). This program helps rare disease populations alleviate three major barriers namely, the diﬃculty in accessing high-quality diagnosis and treatment, necessary medicines and ﬁnancial support. In 2021, more than 24,000 patients with rare diseases purchased relevant medicines and obtained corresponding medication services from JD Health, and the Fund has aided patients with rare diseases. On February 18, 2022, JD.com donated anti-pandemic relief materials worth RMB to medical workers in Hong 100 million 69 6,000 Kong, of which the ﬁrst batch of packs of supplies arrived on February 23, 2022. Execution ESG heads from sub-groups and business lines Follow-up Sub-groups and business lines Data support ESG data collection and information disclosure 2021 JD.com Environmental, Social and Governance ReportOverview 09 10 Sustainable Development Strategic Framework JD.com has always adhered to the mission of “ Powered by ” Technology for a More Productive and Sustainable World. On this basis, in 2021, JD.com brought up a brand-new sustainability strategic position, Leading the Sustainable Future “ ” as the technological driver, JD.com has been performing according to the sustainable development framework. JD has been actively fulﬁlling its social responsibilities, and enabling a more productive and sustainable future by promoting as a New Type of Real Economy Enterprise. On the basis of inclusive development, cultivating talents, promoting good the ESG governance system as the organizational driver and consumption, boosting high-quality economic development, supply chain infrastructure and digital technology innovation and safeguarding the natural environment. c i g e t a r t S n o i s s i M c i g e t a r t S i g n n o i t i s o P Powered by Technology for a More Productive and Sustainable World Leading the Sustainable Future as a New Type of Real Economy Enterprise Promoting Inclusive Development Cultivating Talents Promoting Good Consumption Boosting High-Quality Development Safeguarding the Natural Environment k r o w e m a r F l n o i t c A e b a n a t s u S i r e n r o C e n o t S Organizational Driver ESG Governance System Technological Driver Supply Chain Infrastructure + Digital Technology Innovation Strategy Execution Committee (SEC) ’ The SEC is responsible for making decisions on the strategic goals, directions, and key scope of work in the core areas of the Group s sustainable development, in addition to clarifying the internal organizational structure of ESG management and supervising and guiding the overall implementation of work. The SEC reports ESG-related work to the Board of Directors to ensure that ESG key topics are integrated into the company s overall strategy and contribute to sustainable growth. For instance, the SEC will establish a ’ governance system and strategic framework based on the identiﬁcation of climate-related risks and opportunities and conduct regular supervision and information disclosure on the progress of risk management and other related work. ESG Task Force ’ The ESG task force continuously incorporates ESG related risk management into the company s daily code of conduct and is responsible for coordinating ESG heads of various sub-groups and business lines to implement and promote ESG work. Strengthens the sustainable development consensus and strategic synergy among sub-groups and business lines; drives forward the implementation of ESG management regulations and sustainable development culture. Sets up a climate action task force to coordinate the identiﬁcation and management of climate-related risks and opportunities. 2021 JD.com Environmental, Social and Governance ReportOverview 11 12 Materiality Assessment and Stakeholder Engagement Stakeholder Engagement Identiﬁcation and Analysis of Material Issues Through benchmarking analysis and stakeholders ’ surveys, JD selected 35 strategic issues conducive creating sustainable shared values and formed a materiality matrix. Among them, the high and moderate priority material issues are regarded as the key disclosure topics in this report. The data availability determines the scope and boundary of the report. Materiality Assessment Flow Benchmarking Analysis Stakeholders Survey Identiﬁcation of Issues Creating Sustainable Shared Values Materiality Matrix International standards, ESG rating Questionnaire Importance to stakeholders High priority agencies, and HKEX requirements survey Importance to JD business Macro-economic policies, Interviews strategy industry policies, and regulatory requirements ’ Peers best practices, JD business positioning, and strategy Materiality Matrix material issues Moderate priority material issues Low priority material issues High l s r e d o h e k a t s o t e c n a t r o p m I ’ Board s participation in ESG management Consumer rights and satisfaction Doing business with integrity Cyber data security Privacy protection and personal information security Dissemination of healthcare science and inclusive healthcare Improving energy eﬃciency Sustainable revenues and growth Better quality products and services Eﬃcient and intelligent supply chain Industry digitalization and high-quality development Responding to climate change Digital technology innovation and new-generation infrastructure development Environmental and social risk identiﬁcation and management Responsible procurement Employee training and overall development Information transparency and eﬃcient communication Independence and diversity of Board of Directors Deeply participating in ” Circulation “ Dual Rural revitalization and common prosperity Promoting high-quality employment Anti-corruption compliance Intellectual property protection (IPP) Green packaging and resource recycling Sustainable consumption Supplier risk management; Creating a fair business environment Anti-pandemic and disaster relief Strategic philanthropy and charity Boosting real economy and supporting SME growth Protection of employee s healthcare and rights ’ Business inﬂuence and partner ecosystem construction Green and responsible investment A corporate culture of equality, inclusiveness and diversity Moderate Importance to JD.com ’ s strategies High Responding to the expectations of multiple stakeholders and continuously striving for sustainable values co-creation through ongoing dialogue and cooperation are the cornerstones for JD.com to achieve long-term development and growth. JD.com fully considers the comprehensive impact of its own operation on stakeholders. By maintaining regular and diversiﬁed communication with stakeholders such as consumers, employees, shareholders and investors, government regulatory agencies, business partners alongside the value chain, the communities, and the environment, and promptly responding to their concerns and expectations, JD.com has continuously improved its ESG governance level. At the same time, maintaining good relationships and continuous communication with stakeholders provides a key reference for JD.com to identify important sustainability opportunities, enhance related work, and strengthen the quality of information disclosure. Stakeholders 2 Material Issues Communication ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Cyber data security Doing business with integrity management Privacy protection and personal information security Doing business with integrity management Cyber data security Eﬃcient and intelligent supply chain Privacy protection and Cyber data security Responding to climate change Promoting high-quality employment Anti-corruption compliance Industry digitalization and high-quality development Integrity management Cyber data security Eﬃcient and intelligent supply chain Consumer rights and satisfaction Sustainable revenue and growth Better quality products and services Business inﬂuence and partner ecosystem construction Environmental and social risk identiﬁcation and management Responding to climate change Green packaging and resource recycling Consumers Employees Shareholders and Investors Government Regulatory Agencies Partners on the Value Chain Communities and Environment Consumer rights and satisfaction Better quality products and services personal information security Anti-corruption compliance Protection of employee healthcare and rights ’ s Employee training and overall development Privacy protection and personal information security Sustainable revenue and growth ’ s participation in ESG Board management Digital technology innovation and new infrastructure development Promoting high-quality employment Rural revitalization and common prosperity Creating a fair business environment Green packaging and resource recycling Responsible procurement Sustainable consumption Rural revitalization and common prosperity ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Continuous online and oﬄine communication (apps/ websites/stores) 24/7 customer service hotline Daily media communication All-staﬀ emails, communication meetings, forums, the employees representative congress, training activities and feedback mechanisms ’ Phone calls, meetings and company visits Corporate annual report, quarterly reports and announcements Roadshow Daily reports and communication Participation in policy recommendations. Industry forums and conferences Daily procurement, training, and evaluation Industry forums Supplier conferences ● ● ● ● ● ● ● ● Social media communication Consumer research Employee service hotline, bigear@jd.com, the Group trade union, the Group audit channel, etc. s ’ ’ s Daily reports and communication on sustainability and ESG related issues Field investigation Cooperation agreements signing and strategic partnership establishment Responding to inquiries for listed companies from regulatory agencies Daily media communication ● “ Jing Dian Mai Platform ” ” Academy, “ Jing Public welfare programs and fund-raising platforms ● ● CSR forums and activities Volunteer activities Daily media communication Social media communication 2 The material issues as the key topics are based on the analysis results of the ESG material issues of JD.com and the comprehensive identiﬁcation of the daily communication with JD.com s stakeholders. ’ 2021 JD.com Environmental, Social and Governance ReportOverview 13 14 Part I Leading the Sustainable Future as a New Type of Real Economy Enterprise 2021 JD.com Environmental, Social and Governance ReportLeading the Sustainable Future as a New Type of Real Economy Enterprise15 16 Unleash the Great Growth Potential with JD’s Identity as a Real Economy Enterprise A real economy-based enterprise possesses the genes and the vitality of SMEs, support rural revitalization, promote advantages of traditional enterprises, as well as innovative sustainable and high-quality industrial development, digital technologies and rich industry insights. It continuously and ultimately lead a sustainable future. By continuously promotes the upgrade of the quality and eﬃciency of the strengthening ESG governance and managing social and real economy by building and opening its digital intelligent environmental risks more systematically, JD.com will technology capabilities. Rooted and developed in the real strengthen its positioning as a supply chain-based enterprise, economy, JD.com continues to open its digital technology constantly unleashing the great growth potential of a real capabilities and digital intelligent supply chain infrastructure economy-based enterprise and realize more steady growth and to fully serve the development of the real economy, unleash high-quality development. JD.com: New Type Real Economy- JD.com: New Type Real Economy Enterprise Panorama based Enterprise Panorama Continuously unleashing the great growth potential of a real economy-based Continuously unleashing the great growth potential of a real economy enterprise for high-quality growth enterprise for high-quality growth Clients Serving about 570 million customers Serving over 8 million business clients 91% of Fortune Global 500 enterprises H e J bi, H vin c pro oint pro e e n a n m otio n i a n P u t i a n , F u j p r o v i n c e i c b r a n d P u b l l d i n g b u i S w o n u d e n a g, G uizh Xiu hibin province uyi and Fuping, Hebei province W H ota Xinjia n n, g Self-operated logistics infrastructure Over 1,300 warehouses With an area of more than 24 million square meters Same- and next-day delivery service available in 93% districts and counties, and 84% villages and towns Serving about 600,000 administrative villages … … D i g i t a l u p g rad b c e i e u it c s e s a e u , H o v i n r o p d s s a n n n a e e g , H c v i n o W i g n r p a i g B g a a h B c u X Z h u j i a n g Z h e j , i p r o v i n c e H o s i e r y Jinjiang, Fujian province Sneakers A uto re p air s h o p Flo w er s h o p C o s u m p er m u m ark nity et all and medium-sized sto r e s t a r g e t e d i z e d a n d i v e S M E s i n g j S e r v i c e s t o s p e c i a l i n n o v a t i n B e i Suzhou, Jiangsu province City Service Festival e i e c d i n t i c s b X i n ji, H e v i n o p r n a p x E s o m e d g a l e s Q i n d n E a h S g n o d o , a o r g p ri s r t e d i g it a li z p n e c n v i n e a ti o W h o u D e i b u c n , H e a v i n g i n p r o n b l e e o r t H p v i n p p r o u u s e t o e i b e c u A nji, Z h ejia n g D evelo pin g th e provin ce 2 B m arket …… “ M a n t i a n x i ng Proje c t Chenghai, Guangdong provinceToys Shifang, Sichuan province Bamboo pulp N a n t o n g , J i a n g s u l e s p r o v i n c e H o m e t e x t i e of ind u s t r i a l O E M s ” t o e m p o w e r S M E s u s g d n e c n n a q i a n , J i a x i a v i n p r o u g S n e F L i s h p r u , J ili n v i n e c o g n d n i n e c n a d i a o x i, L i a v i n o r p n n a e K u B Linzhi, Tibet R u r a l r e v i t a lizatio … … n “ B e n f u P l a n ” “ C o s t r e d u c t i o n a n d e ﬃ c i e n c y i m p r o v e m e n t ” f o r S M E s BAIC Geely Auto Haima Motor Linde Forklift Attributes of real economy enterprises + Digital technology abilities rises Employees Clients First party products Tens of thousands of oﬄine stores Self-operated logistics infrastructure D i g i t a l u p g r a d e o f s m “ D i g i t a l b r a i n ” f o r l a r g e e n terp … … G ro c ery Sto re D ru g sto re e c e v n n i e s t o r e n o C e r o t e s r d w a r a H … … China Energy a d i a h i n C a H u n Z O O M L I O N a e M i d r a i e H J o y o u n g E C O V A C S Employees Directly employing over 300,000 logistics front- line employees Driving nearly 20 million new jobs First party products Nearly 10 million retail SKUs Tens of thousands of oﬄine stores SEVEN FRESH Supermarket, JD Home Appliance Store, JD Convenience Store, JD Auto Service, JD Industry Intelligent Retail Store, JD Pharmacy and other oﬄine stores Growing up in the real economy Data as of December 31, 2021 Serving the real economy Rooted in the real economy Compliance Governance to Achieve More Sustainable and Steady Development and Growth Compliance management is the core initiative for JD.com to anti-corruption and integrity compliance, information security practice the philosophy of achieving success the right way. It is compliance, auditing compliance and transaction risk also an important foundation for JD.com to improve the level of control. It ensures eﬀective compliance management through risk management continuously. Our compliance management beneﬁts from eﬀective protection with three defensive lines. “ ” multiple mechanisms such as comprehensive publicity, joint accountability, and rewards. It relies on ﬁve key actions: laws and regulations compliance, Compliance Management System One Principle: Achieving Success the Right Way Guided by the concept of “ achieving success the right way ” and adhering to the principle of “ compliance represents development, the Group complies with laws and regulations, builds a culture of integrity and anti-corruption, enables ” eﬀective compliance management driven by technology and data, and establishes a forward-looking, ﬂexible, and eﬃcient compliance system. Three Defensive Lines: All-Round Guarantee The ﬁrst defensive line Applicable to all employees compliance system and adheres to the bottom line of compliance Every employee is familiar with and ﬁrmly implements JD.com ’ s by resisting undesirable temptations. The second defensive line Applicable to risk The professional teams shall publicize and implement a good management teams including compliance culture, apply smart technology to all essential nodes legal, ﬁnance, information of risk and compliance management, reduce corporate risks, and security and risk control ensure long-term and stable development. The third defensive line Applied to independent of fairness, justice and independence, the supervision and audit supervisory and audit team team oversees the compliance practices of each organizational By following the compliance system and upholding to the principle unit, investigates and combats corruption, and ensures operational compliance. 2021 JD.com Environmental, Social and Governance ReportLeading the Sustainable Future as a New Type of Real Economy Enterprise 17 Five Perspectives Laws and regulations compliance Anti-corruption and integrity compliance Information security compliance Laws and Regulations Compliance JD.com is supervised by the public security organs at both national 18 JD.com regards legal compliance as the basic requirement to achieve its business objectives, and strictly abides by relevant national laws, regulations, and rules. JD.com has always adhered to the “ zero tolerance ” attitude towards corruption and is determined to create an incorruptible and integrity business environment. and local level, the Ministry of Industry and Information Technology of the People s Republic of China (PRC), the Cyberspace Administration of China, the State Administration for Market Regulation of the PRC, China Consumers Association, the State Post Bureau of the PRC and so on. ’ ’ The Group has been rigorously complying with a series of Chinese laws and regulations, including Criminal Law of the PRC, Civil Code of the PRC, E-commerce Law, Cybersecurity Law, the Provisions on Ecological JD.com attaches great importance to information security, ensures that employees have full access Governance of Network Information Content, Advertising Law, Product to the basic knowledge and principles of information security; establishes a sound responding process and disposal mechanism for system security, external attacks and violations; safeguards Quality Law, Food Safety Law, Law of the PRC on the Protection of the Rights and Interests of Consumers, Postal Law, Interim Regulation on the conﬁdentiality of information and data of the enterprise, employees and customers, making Express Delivery , and more. Concurrently, in the process of developing sure the information and data could only be obtained and used when necessary. Auditing compliance Transaction risk control JD.com strictly complies with all legal requirements for a listed company. The management makes a written statement on the eﬀectiveness of internal control of ﬁnancial reporting in the annual report. All business units in JD.com shall always maintain a keen awareness of transaction risk management, regulate business activities, improve the business transaction system, and connect ’ international business, JD.com strictly adheres to local laws and regulations in the countries where it operates. Moreover, it establishes a legal compliance system abroad and gradually improves it with business expansion. Anti-Corruption and Integrity Compliance JD.com always upholds the “ zero tolerance ” attitude towards corruption. It has established and constantly improved the anti- to JD s risk control system to ensure accurate identiﬁcation and intelligent confrontation of corruption system to ensure it can eﬀectively prevent, monitor, and respond to corruption. Key measures are taken to build the anti- business transaction risk behaviors. corruption system, including the construction of a comprehensive anti-corruption policy system, well-established training system, publicity and education, accurate identiﬁcation and assessment of corruption risks, a strict whistle-blower protection and reward system, joint anti-corruption action with industry partners, optimization of international anti-corruption system, and so on. Compliance Enforcement Mechanism Comprehensive Anti-Corruption Policy System JD.com has established sound anti-corruption management regulations and systems, including the JD.com Business Conduct and Ethics Code, JD.com Anti-Corruption Regulations, JD.com Whistle-blower Protection and Reward System, JD.com Integrity Reward Full publicity and implementation Joint accountability Rewards Ensure the compliance policy is deeply rooted in the hearts of all The system of “ Accountability 3” Oﬀer rewards to employees Basics and Control (ABC) and who have performed well in employees through promotion collateral penalties are carried compliance and those who have and implementation. out in cases of major compliance reported violations. issues. Policy, JD.com Active Filing Reward Policy (for Trial Implementation), JD.com Gifts Management Regulations, Vendor Paid Travel and Business Dinner Regulations, Anti-Commercial Bribery Agreement, etc., and has always practiced the concept of “ ” ” represents development and the core corporate value of integrity. “ compliance All-Round Training, Publicity, and Education To advocate for employees ’ integrity and self-discipline and create a transparent and compliant workplace, JD.com has established a multi- level and diversiﬁed training and publicity system and conducted 4 anti-corruption training across the Group, covering 319,093 full-time employees, accounting for 98.8% of the total number of employees. New employees will have to complete the online anti-corruption training course and pass the examination before the probation s ’ completion. All employees are required to receive anti-corruption training and assessments every year, while director-level or above leaders should take anti-corruption special training. The anti-corruption training covered 319,093 accounted for 98.8% full-time employees of the total number of employees 3 Based on the provisions of multi-level approval, the general decision-making of managers should be resolved within two superior levels. JD.com implements a two-level decision-making system in terms of ﬁnancial power and personnel power. In addition to the special ABC principle, “ ” 4 The anti-corruption training data is based on the online check-in data of full-time employees except the ones who are in pre-dismission, maternity leave and long- term leave as of April 2021. 2021 JD.com Environmental, Social and Governance ReportLeading the Sustainable Future as a New Type of Real Economy Enterprise 19 2021 JD.com Environmental, Social and Governance Report 20 Join Hands with Industrial Stakeholders to Create an Integrity and Anti-Corruption Ecosystem JD.com continues to build the Sunshine Integrity Alliance® compliance management and promote the compliance “ ” (hereinafter referred to as the Alliance ), and the Sunshine Integrity ecosystem of the industry. In the future, JD.com will continue to Member Platform has served more than 600 member enterprises. adhere to the business philosophy of integrity management, In 2021, the Alliance made great eﬀorts to facilitate the enterprise- achieving success the right way, collaborate with industry school-research institution cooperation model through various and social partners with an open mind and continue working “ ” actions. It supported the ﬁrst ” Award for Private Enterprises “ Integrity and Compliance Innovation together to build an integrity ecosystem, and jointly construct a event held by the Anti-Corruption transparent business environment. and Compliance Research Institute of Internet Enterprises of East China University of Political Science and Law. During the event, 18 outstanding enterprises won awards for their innovation initiatives on integrity and compliance, demonstraing the best practices and eventually promoting the compliance culture of the industry. In addition, the Alliance published the book Anti-corruption Code for Internet Enterprises, which showcases innovative management practices collected from outstanding enterprises such as JD.com, Meituan.com, ByteDance and Xiaomi, to improve the level of Active Construction of the International Anti-Corruption System JD.com is actively promoting international business compliance compliance management for international business across to secure the company s international business strategy. In 2021, multiple dimensions, such as organizational capabilities ’ Accurate Identiﬁcation and Evaluation of Corruption Risks Information Security Compliance In 2022, JD.com will carry out anti-corruption, integrity and culture will be enhanced and promoted through various forms. through establishing the international anti-corruption policy building, key issue investigation, anti-corruption and integrity system, opening reporting channels and conducting anti-corruption culture promotion, etc. A well-established governance training including Foreign Corruption Practices Act training and structure, regulation system, and management ﬂow will uplift publicity, JD.com has built an anti-corruption and compliance organizational capabilities. An eﬀective deterrent for corruption regulation system for its international business, to ensure healthy will be achieved by cracking down on corruption cases in critical and sustainable expansion in the international market. risk areas within key countries and regions. In the meantime, employees compliance awareness and corporate s compliance ’ ’ JD.com analyzes and categorizes business risks through case review, establishes early warning and communication mechanisms, and helps business departments take the initiative in prevention and internal control. Strict Whistle-blower Protection and Reward System In terms of internal anti-corruption, JD.com has set up a blower or the reporting unit. Especially for the whistle-blower, corruption reporting center to comprehensively collect all kinds JD.com will oﬀer cash rewards ranging from RMB 5,000 to RMB of corruption cases in diﬀerent forms, while it guarantees the 10,000,000. reporter and the reported information are strictly conﬁdential. ’ The whistle-blower can contact JD s corruption reporting center by calling 400-601-3618 or emailing jiancha@jd.com. JD.com encourages insiders to report instances of corruption with their real names actively and describe them truthfully and objectively. If a corruption was conﬁrmed ﬁnally through investigation, the rewards will be provided to the whistle- JD.com incorporates internet security and privacy protection into ’ the company s key development strategy. Data of consumers, suppliers, partners, employees, and other related entities are considered valuable assets. JD.com has established a comprehensive internet security and privacy protection system ’ based on national laws, policies, and regulatory requirements, with reference to international standards and industry s best practices, and subject to the company s zero-trust security architecture. ’ “ ” The system covers aspects of policy, management, technology, supervision and training, etc. In addition, JD.com works closely with ecological partners for a trustworthy security infrastructure to continuously tackle information security problems. Leading the Sustainable Future as a New Type of Real Economy Enterprise21 22 In terms of system design, JD.com refers to ISO27001 , ISO27701, To support and guarantee the implementation of information GB/T 35273 Information Security Technology - Personal security compliance, JD.com has formulated relevant rules Information Security Speciﬁcations, Network Security Law, and regulation system for information security management Personal Information Protection Law, Data Security Law and and personal information protection and incorporated the other domestic laws, regulations and standards, and employs implementation and fulﬁlment of the rules as important external experts and lawyers to provide professional support and assessment criteria for management and key position guidance. Internally, JD.com has formulated more than 60 internal employees. The information security department and legal system requirements covering all business lines and suppliers in security management, privacy protection, and data security, and compliance department are responsible for supervision and ’ management of the company s data security and personal will continue to strengthen related work. information protection, and all internal employees are required to take information security related training courses. In terms of supervision and management, JD.com has established the Safety and Risk Control Committee as the company s highest ’ information security and privacy protection management body, with the Chief Compliance Oﬃcer as its chairman. The Chief Compliance Oﬃcer and technology vice presidents from sub- groups and business lines are the representative members to jointly make decisions on the strategic planning of information security and privacy. The Committee obtains a multi-level structure that consists of a Safety and Privacy Management task force and a Safety Enforcement task force. It leads the overall supervision, coordination, and standardization of information security and privacy-related work. The Safety and Privacy Management task force is responsible for the supervision, coordination and implementation of resolutions made by the Committee, while the Safety Enforcement task force implements risk and vulnerability rectiﬁcation, promotes security, privacy and risk control programs, conducts compliance rectiﬁcation against regulatory requirements, and follows up daily work such as work orders related with information security. External Recognition of Data Security and Personal Information Protection: ISO27001 Information Security Management ISO27701 Privacy Information Management System “ Trusted Cloud ” Level-3 Certiﬁcation issued by Data Center Alliance Level-3 Certiﬁcation of Security Level Protection approved and issued by the Ministry of Public Security Level-3 Certiﬁcation of DSMM (Data Security Maturity Model) awarded to JD Technology At the same time, JD.com has set up a data monitoring and strict accordance with JD.com Security Management Standards auditing mechanism to ensure comprehensive control over for Cross-border Data Flow Protection . data security. Internally, JD.com has formulated the Basic ’ s Business and Security Requirements and Guidelines for JD Data Openness, stipulating that all businesses involved in data opening and the data security capabilities of partners are subject to the evaluation by JD.com Information Security Team. Furthermore, JD.com assesses cross-border data ﬂow with reference to relative national laws, policies, and regulations, and conducts the security control for cross-border data ﬂow in Leading Practice ” “ security system that adapts to all zero-trust JD.com has built a asset types of identities, applications, data, and devices. With the system s equipment, JD.com has signiﬁcantly advanced ’ its security research capabilities. In 2021, JD.com detected the “ and other high-risk vulnerabilities that aﬀect the Mystique ” security of 800 million Android users worldwide, which highly demonstrates its social responsibility practice of protecting network security and privacy. JD.com highly values the enhancement of the data security and privacy protection and keeps improving the system and measures with reference to Data Security Law, Personal Information Protection Law, and other related laws and regulations. JD.com s zero- ’ “ trust security system covers data security, application security, oﬃce network security, privacy protection and other security ” domains, containing more than 40 information security and privacy protection regulations such as Information Security and Privacy ’ s Personal Management Code, Data Security Management Norms, Data Classiﬁcation and Grading Management Norms and User Information Security Management Norms, and has been gradually implemented, optimized and upgraded by complying with the PDCA 5 . In addition, JD.com built a privacy evaluation mechanism for business conduction and R&D testing, making sure all activities model involving users privacy are subject to privacy impact assessment and regular audit. ’ 5 PDCA: Plan, Do, Check and Act. 2021 JD.com Environmental, Social and Governance ReportLeading the Sustainable Future as a New Type of Real Economy Enterprise23 Audit Compliance Internal Audit and Control System Leading the Sustainable Future as a New Type of Real Economy Enterprise 24 JD Social Value Proposition Demonstrated as a New Type of Real Economy Enterprise Reporting mechanism Reporting frequency The Group has an audit department as the independent internal audit institution to supervise and Promoting Good Consumption evaluate the establishment and implementation of the internal control system of the Group and its subsidiary companies. The Group s audit department head reports to the Chief Compliance Oﬃcer (CCO) ’ for administration-related works, and the audit committee for internal control compliance. JD.com takes merchandises and services as the fundamental, relies on technology innovation, Audit department convenes a meeting at least once every six months to report work progress and results to the CCO and the Audit Committee. and leverages its strong supply chain, digital technology, and marketing abilities to satisfy consumers diversiﬁed needs at any time and pursuing for the ultimate experience, and ’ continues to lead good consumption. Measures and Eﬀectiveness Boosting High-quality Development The internal audit provides independent and objective evaluation and consultation for management. This can add value and optimize the operation of the organization. By applying systematic and standardized methods, the audit evaluates and improves the eﬀectiveness of risk management, control, and governance processes. As a result, it helps the organization boost the eﬀectiveness of internal control, authenticity and integrity of ﬁnancial information, eﬃciency and eﬀectiveness of business activities, and other goals. Transaction Risk Control All business units in JD.com shall always maintain a keen sense of transaction risk management, standardize business activity rules, and improve the business transaction system. They will strictly control the transactions that aﬀect user experience or violate platform policies. This is to ensure the legitimate rights and interests of both parties of a transaction and eﬀectively prevent and control risks. JD.com Security and Risk Control Committee has a risk control working group, composed of risk control heads from each system. It comprehensively controls the transaction risks of the whole group, maintains the frequency of monthly communication on decision- making, and further communicates and makes decisions based on industry policy interpretation, risk trend research and judgment, risk-related public opinion across sub-groups, etc. Competition Compliance JD.com strictly abides by the Anti-Monopoly Law of the PRC and Anti-Unfair Competition Law of the PRC and related regulations, and takes speciﬁc measures that include but are not limited to the below to maintain competition compliance: Continuously strengthening the governance ability of Formulating competition compliance manuals and related the platform and formulating a series of governance learning materials. rules concerning competition compliance based on national laws and regulations. Setting up professional competition compliance teams and conducting daily inspections. Developing and applying a multi-technology system and proceeding with diversiﬁed and tiered governance. Carrying out all-round and diversiﬁed promotion and training on competition compliance. Cooperating with external experts and lawyers to support competition compliance. Conducting comprehensive compliance supervision and management for the Company s business activities under ’ Carrying out special governance for competition the leadership of the compliance department. compliance in key ﬁelds. Leading the sustainable future as a new type of real economy enterprise As a technology and service enterprise with supply chain at the core, JD.com continuously promotes technology innovation and connects with industrial scenarios, eﬀectively driving the digital, intelligent, low- carbon transformation of the upstream and downstream partners throughout the industrial chain. The company will continue to help the real economy improve the quality, decrease the cost, and increase the eﬃciency. Cultivating Talents JD.com is committed to performing as an “ employment stabilizer ” and providing an ideal career development platform for every employee. JD will continuously promote ESG as a common belief and day-to-day code of conduct within the company. Safeguarding the natural environment JD.com will leverage its supply chain ability and inﬂuence of the industrial chain and actively respond to environmental challenges to continuously drive forward the green transformation of supply chain while empowering green consumption. JD hopes to contribute to fulﬁll ’ the nation s carbon peak and carbon neutrality goals and achieve its own green development. Promoting Inclusive Development of the Society JD.com supports rural revitalization through its “ Benfu Plan ” and empowers SMEs with digital technology. By conducting various corporate philanthropy programs, we facilitate the two-way ﬂow of resource elements between urban and rural areas, leading more people to pursue a better life while promoting an inclusive society. 2021 JD.com Environmental, Social and Governance Report25 26 Part II Promoting Good Consumption JD.com takes merchandises and services as fundamental. It relies on technology innovation, leverages its strong supply chain, digital technology, and marketing abilities to satisfy consumers’ diversiﬁed needs at any time and pursuing for the ultimate experience, and continues to lead good consumption. 2021 JD.com Environmental, Social and Governance ReportPromoting Good Consumption27 28 Product Responsibility and Content Management Strictly Forbidden to Sell Unqualiﬁed Products All-Round Product Quality and Safety Guarantee To assure the product quality sold on the platform and guarantee consumers ’ safety, JD.com has established a quality management mechanism with the measures below: ’ interests, JD.com initiated the “ that is, sticking to one direction of “ constructing the Rules Guarantee To better protect consumers digital quality ecosystem, ” quality control capability; “ quality control systematization; ” carrying out two major actions of ” “ building the product quality ecosystem, and building the all-chain establishing three capabilities including big data quality control, merchant quality improvement, supervision and ” and implementing four initiatives including ” reward and punishment mechanism, “ thus to improve the whole-cycle quality control measures covering merchant “ merchant entry auditing, diagnosis assistance, daily ” and “ ” ” “ ” “ ” “ ” 1234 Program, “ entry, incubation, management and elimination. JD.com’s Quality Ecosystem “ First, establish the Basic Qualiﬁcation Standard for JD.com Marketplace Merchant Entry ” “ and Qualiﬁcation ” Management Rules for JD.com Retail Business Suppliers , which reﬁne the entry qualiﬁcation standards for diﬀerent categories, and establish diﬀerent requirements for merchant and brand qualiﬁcation for diﬀerent categories. “ JD.com Marketplace Merchant Violation Credit Management Rules Second, issue the ” and the “ JD.com Supplier Violation Management Rules, which deﬁne the behaviors of selling counterfeits or unqualiﬁed ” Constructing digital quality ecosystem products and set the punishment. According to the rules, related products will be removed from the platform. In addition, the merchant or supplier will receive a deduction of credits or have their stores closed. One direction Two major actions Three capabilities Building merchandise quality ecosystem Building all-chain quality control capability Integration and co-development with brands and merchants High-quality standards development Quality-based selection Traﬃc support Warehousing inbound check and acceptance Warehouse inspection Unannounced audit Quality control big data capability Merchant quality improvement capability Quality control systematization capability Whole-cycle quality control measures Entry Incubation Management Elimination Four initiatives Merchant entry audit Diagnostic assistance Day-to-day supervision Reward and punishment mechanism Qualiﬁcation audit system Dynamic veriﬁcation of qualiﬁcation validity Unannounced on-site inspection Transparent transmission of business rights and interests Positive and negative evaluation analysis Quality issues diagnosis Quality-related public opinion monitoring Merchandise listing and removing Mysterious sampling and experiencing sampling Merchant credit management rules Merchant training and assessment Periodic evaluation “ General Principles of JD.com Marketplace Product Quality Inspection Sampling Third, set the ” “ General Principles of JD.com Retail Business Supplier Product Quality Inspection Sampling , ” and the and formulate the quality inspection speciﬁcation for sub-categories according to national and industry standards, which “ describe and explain the inspected items. In addition, issue the JD.com Marketplace Product Labeling Sampling Rules ” and “ JD.com Retail Business Supplier Product Labeling Sampling Rules ” to conduct special sampling inspections for the commercial marks on the products and the packaging . “ JD.com Marketplace Forbidden Product and Information Rules Fourth, issue the ” and “ JD.com Marketplace Product Shelf-Life Rules to make institutional requirements for the products that have been explicitly ” eliminated or stopped selling, and have expired or deteriorated. The synergy with regulatory authorities has been built to eﬀectively intercept and remove unqualiﬁed products by continuously updating the product list and keyword screening. Meanwhile, the inbound warehousing standard has been established to conduct sampling inspections on package labels and logos. Moreover, on-shelf time will be limited for products with expiration dates. Fifth, issue the “ JD Retail Counterfeit Accountability Rules ” to reiterate the company ’ s policy of “ zero towards counterfeits. The employees involved, their direct and indirect leaders will be brought to ” tolerance account. 2021 JD.com Environmental, Social and Governance ReportPromoting Good Consumption 29 30 Intellectual Property Protection JD.com attaches great importance to intellectual property targeted internal and external management measures are protection. As a leading supply chain-based technology and taken to ensure a clear workﬂow, clear measures, and eﬃcient service provider in China, JD.com is constantly exploring IPR implementation of various intellectual property management protection in the e-commerce business. JD is making eﬀorts processes, and further improve the management structure and to ensure genuine licensed products, purifying the business work details by implementing and certifying the enterprise environment, and safeguarding the legitimate rights and intellectual property management system. interests of IPR holders by adopting comprehensive measures covering all critical control processes including before, during, and after issues. JD.com is more focused on reinforcing front- end control. JD.com actively encourages employees to apply for patents and protect R&D innovation, and incorporates the incentives for innovation into the daily work, including incentive Taking the example of merchants labeling improper or Meanwhile, the Group constantly strengthens employees rules, event promotion and publicity, talent evaluation, etc. ’ Management Measures JD.com carries out full-cycle quality control management. Regarding fresh food quality management, JD.com has set up a Before merchants enter the platform, JD.com conducts strict series of proprietary sensory standards for fresh goods. Taking reviews of their qualiﬁcations, including product qualiﬁcations, hairy crab quality control standards as an example, JD.com brand qualiﬁcations, certiﬁcation of authorization, etc., cooperated with Suqian Agriculture and Rural Bureau to build fake patents, JD has built an internal algorithm model and awareness of intellectual property protection through internal connected it with an external patent database to use systematic communication and training programs. In 2021, more than interception to prevent and control such behaviors. This is to 460 internal training sessions on intellectual property were reduce the misleading of and potential damage to consumers organized, covering nearly 10,000 trainees accumulatively. caused by fake patent numbers, expired patents and improper labeling, with a recognition accuracy as high as 94%. and makes an environmental investigation for production. Suqian Bawang crab brand. By deepening the cooperation with During the Beijing 2022 Winter Olympics and Winter JD.com has established multiple quality guarantees during upstream, midstream, and downstream players alongside the the sales process through inbound warehousing inspections, industrial chain, JD.com has jointly established commodity unannounced audit, and random sampling inspection. standards for the hairy crab, built collaborative warehouses for cold-chain products, created well-known regional brands and enabled omnichannel sales. Paralympics, JD.com paid great attention to IPR protection for Olympic-related goods. JD.com devoted a special team to preventing and managing risks beforehand and established a green channel for complaints handling. This was in close collaboration with the Beijing Winter Olympic Organizing Committee. Simultaneously, JD.com ’ platform enables the comprehensive protection of users s intellectual property protection ’ ’ privacy and enhancement of users experiences, and greatly facilitates the registration and use of accounts for international rights holders. With respect to the Group ’ s own IPR, JD ’ s technological innovation achievements, brands, commercial logos, soft works, domain names, and other intellectual property assets are fully protected in a timely manner through eﬀective business collaboration and active follow-ups. A series of 460 In 2021, more than internal training sessions on intellectual property were organized 10,000 trainees in total Nearly participated in the training 2021 JD.com Environmental, Social and Governance ReportPromoting Good Consumption 31 32 Consumer Rights and Service Management JD.com always adheres to the original intention of “ ” “ customer ﬁrst ” to provide consumers with considerate and privileged services. JD.com fully implements a customer-oriented strategy to form a complete and closed-loop from customer insight to problem identiﬁcation, optimization and improvements in customer experience. Continuous Commitment to the Superior Consumer Experience JD.com is committed to bringing superior shopping experiences to users. In diﬀerent consumption scenarios and on diﬀerent ends, JD oﬀers users their desired products and services at the right time and place with its powerful supply chain infrastructure, data, technology, and marketing capabilities. By the end of 2021, the number of active users on JD.com increased to 569 million. That is a net increase of 98 million when compared to the same period last year, stemming from competitively priced goods of super quality and considerate services. Experience of Excellence All Categories for All Multitude In 2021, by introducing more than 370 supermarkets such as Wal-Mart and Yonghui Supermarket, JD.com covered over 34,000 oﬄine stores and provided over 3 million SKUs in all categories. These include computer and digital products, mobile phones, home appliances, consumer goods, fashion, home furnishing products, fresh food, livelihood services, and industrial products. Thus, JD provides consumers with a wide variety of high-quality choices and intelligent services to institutional customers, including governments, enterprises, and institutions. The number of active users on JD.com increased to million 569 98 Net increase of million in terms of active users compared to the same period last year In 2021, by introducing more than 370 supermarkets such as Wal-Mart and Yonghui Supermarket, 34,000 JD.com covered over 3 oﬄine stores, provided over million SKUs in all categories Content Speciﬁcation and Management of Marketing JD.com highly values the safety control of advertising content, formulating the JD.com Advertising Audit Rules in accordance with the Advertising Law and other laws and regulations, allocating a professional risk control and audit team to improve the risk control ability of the platform continuously. Advertising Content Governance JD.com has continuously improved the rules of advertising content security and gradually built the risk control path for advertising content standardization and compliance management. By continuously optimizing and perfecting the algorithm and manual auditing mechanism, setting prohibited categories and adding the interception of sensitive words, the Group can eﬀectively screen the non-compliant advertisements and intelligently classify and control all types of advertisements. In addition, JD.com has formulated rules and penalties for violations to strengthen the management of advertisers; established an inspection mechanism and conducted high-frequency investigations on advertisements to eliminate illegal advertisements in a timely manner. As a result, in 2021, JD.com intercepted over 16 million illegal advertisements. The Group makes full eﬀorts to ensure that advertising content is compliant and legal and keeps in line with public order, good customs, and mainstream values. Advertiser Compliance Training JD.com has established a knowledge base of advertising content security, constructed its communication matrix, rolled out online learning channels on Jing Dian Academy and Jing Mai Platform, and conducted trainings through various forms such as live streams, videos, cartoons, and articles to help advertisers understand the Advertising Law and other related laws and regulations, and raised their awareness concerning advertising risks. In 2021, JD.com organized 59 training sessions on advertising rules and content security for advertisers in combination with market supervision requirements; released 87 professional learning articles on the advertising auditing standards and guidelines, which are accessible to about 190,000 risk awareness and advertising eﬃciency, resulting in an increase of advertisers. These practices have improved advertisers advertisement approval rates. Advertiser Audit Service ’ ’ JD.com values advertisers ’ regular research and surveys, and evaluates the eﬀectiveness of advertising audit services from the perspective of advertisers experience, keeps tracking advertisers demands and feedback on advertising audit services through ’ demands, to improve the quality of the services. 2021 JD.com Environmental, Social and Governance ReportPromoting Good Consumption 33 Fast Delivery Selling to the World and Sourcing from the World 34 brand products covering fresh food, household appliances, To provide consumers with privileged services from JD.com at helping JD.com realize classiﬁed and customized distribution Adhering to the development vision of “ becoming the most the fastest speed, JD Logistics constantly upgrades the service services, including same- and next-day delivery, night delivery, trustworthy international supply chain service provider, JD beauty products, baby and maternal products, fashion, home eﬃciency. Over the past year, JD.com has invested more than ﬂash delivery, scheduled delivery, luxury express, and the Worldwide (JDW) is committed to introducing JD quality furnishing, etc.; on the other hand, ochama brings forward its RMB 35 billion in the domain of services. By the end of 2021, JD cold chain delivery with temperature control over the whole goods to the vast global market. While bringing high-quality automated stocking warehouse to the store by deploying the Logistics operated over 1,300 warehouses nationwide, running process, and customized delivery. In 2021, consumers in more goods to global consumers, JD Global Sales has also become mechanical arm, AGV automatic handling robot, and feed box 43 Asia No.1 large-scale smart warehouses in 33 cities, than 300 cities across the country were able to experience the a solid backup force for Chinese vogue brands to go overseas. conveying system. All online shopping orders were handled covering an area of 24 million square meters. On the basis of fastest minute-level delivery experience, and JD.com s one- JD.ID, JD s joint venture in Indonesia and JD Central, JD s joint by robots in terms of goods storage, sorting and transferred ’ ’ “ ” nearly 10 million SKUs of self-operated commodities, JD.com hour delivery service, Nearby, was launched on the JD app, has always been a global leader in operational eﬃciency. Since which has covered nearly 400 cities so far. Through ten years of “ ” venture in Thailand, also uphold the development concept of “ ” genuine licensed goods, providing a fast, high-quality, and in stores. The consumers entering the store can witness and experience the future vision of automatic shopping in person. the end of the 2020 Q3, JD.com had opened approximately logistics infrastructure construction, JD.com has signiﬁcantly delightful shopping experience to local consumers in Southeast Besides, JD Worldwide has also reached a strategic partnership Asia No.1 smart industrial parks improved the distribution eﬃciency in remote regions. At Asia. In January 2022, JD.com landed an independent retail with Shopify and will give full play to their respective nationwide in one year. Through the use of a variety of present, JD.com enables consumers in 93% of districts and brand in Europe for the ﬁrst time - ochama, with the new model advantages and capabilities in supply chain infrastructure and automation equipment, the comprehensive eﬃciency of the counties, and 84% villages and towns in China to enjoy same- of super warehouse stores, marking the ﬁrst retailer in the digital technology to jointly create a more convenient and “ ” ” ’ has been improved by over four times, and next-day delivery service. Netherlands that oﬀers online shopping covering all product reliable cross-border e-commerce channel for Chinese and categories. On the one hand, ochama has selected many overseas merchants. “ 500 warehouses and 13 ” newly open Asia No.1 “ ” 35 JD.com has invested more than RMB billion in the domain of services JD Logistics operated over 1,300 warehouses nationwide 10 JD.com dealt with nearly million SKUs of self-operated commodities The warehouse area managed by JD million 24 Logistics exceeded square meters accumulatively Since the end of the 2020 Q3, JD.com 500 had opened approximately Consumers in more than cities across 300 the country were able to experience the fastest warehouses in one year minute-level delivery experience 2021 JD.com Environmental, Social and Governance ReportPromoting Good Consumption 35 36 Smarter Shopping digital intelligent HMI product, YanXi. YanXi focuses on experience, eﬃciency and transformation from text and voice to multimodal ’ JD.com applies smart technology to improve customer service experience. With the rapid development of AI technologies, JD.com has formed an intelligent customer service matrix including ” “ ” “ Intelligent Emotional Customer Service, ” ” “ “ XiaoZhi, AI Shopping Guide Assistant, Intelligent Dispatch, Intelligent Assist, and Intelligent Management. JD.com integrated ” “ Merchant Customer Service “ its best customer service and marketing practices over the years and all-chain AI innovation capabilities to create the platform-based “ ” “ ” interaction, and from conversational intelligence to emotional intelligence. Start C2M Thru to the End Adhere to the Motto of Customer First, “Live Up to the Love” ” ’ surveys among users, and fully implements a customer- and eﬃcient decisions based on product lifecycle assessments ﬁrst batch of certiﬁed enterprises. Retail senior managers listened to users feedback on site. They users experiences, and obtain the rapid business growth. JD.com considers users ’ voices, continuously carries out the “ ” centered experience strategy. In 2021, more than 3,000 JD helped solve 167 pain points and optimized more than 200 items relating to users experiences. ’ In addition, many innovative customer service management JD.com is also committed to promoting the service level of programs have been carried out under JD s private label the whole industry. In 2021, JD Retail actively participated in brands over 2021, which helped realize the closed-loop the opinion collection and compilation of the rules for after- integrated services from service delivery to customer needs fulﬁlment. Among them, the tool Operation Analysis Compass “ ” sales service certiﬁcation initiated by the State Administration for Market Regulation. JD Retail fully cooperated with the can analyze and study the market, brands, categories, users, certiﬁcation institutions designated by the State Administration products, consumption trends, etc. It provides strong data for Market Regulation to sort out relevant standards. JD.com support for product managers, who can then make accurate itself has successfully obtained the certiﬁcation, becoming the from the product positioning, operation, supply chain and ’ ” In addition, during the development of products, consumer “ ” experience programs such as “ ” “ Tasting Experience Oﬃcer, Community Questionnaire Survey, and Oﬄine Test of New Products were rolled out to collect consumers feedback. ’ And the iterative products were continuously developed and JD.com has continuously launched various services to meet the needs of diﬀerent user groups. For example, focusing on the community consumption scenario, JD.com relies on millions of community-based stores, and builds multi-scenario and multi- template consumption channels for users, e.g., in-store, at- “ ” “ home, pre-selling, and self-pickup, so consumers can truly ” optimized according to users evaluations after purchase to enjoy a convenient shopping experience in real-time and on- ’ keep reﬁning the customer experience. demand. To further meet the diversiﬁed needs of customers, JD.com developed a new model of C2M (Customer-to-Manufacturer) “ ” reverse customization, which combines quality-improving and the upgrading of consumption on the consumer side with the digital transformation of manufacturers on the supply side. The model can not only accurately satisfy the diversiﬁed, personalized, and quality-centered needs of consumers and enhance the consumers experience, but also facilitate the manufacturing enterprises access to new technology and ’ ’ more open digital intelligent supply chain system to help them accelerate digital transformation. 2021 JD.com Environmental, Social and Governance ReportPromoting Good Consumption 37 38 Respond to Complaints, Enquiries and Requests Eﬃcient Customer Service Team JD.com has set up the customer service teams with 15,000 service employees in Suqian, Chengdu, and Yangzhou, which provide comprehensive customer services on request consulting, dispute settlement and complaint handling services to customers through online communication, telephone, and mail. Complete Complaint Handling Process In response to complaints, JD.com ensures a timely response and eﬃcient handling through “ “ ” “ ” front-end control and the establishment of a green channel. In terms of the front-end control, ” preliminary research and potential risks evaluations are carried out to prevent risks from occurring. ” “ process, JD.com strengthens the trainings for customer service green channel When it comes to the personnel while strengthening the necessary investment, to improve problem-solving eﬃciency. With such a mechanism in place, 100% of customer complaints were promptly tackled and settled. Customer Privacy and Data Security In 2021, JD.com deﬁned and improved the overall data application mechanism and process, classiﬁed and managed data assets in terms of the level of sensitivity. The highly sensitive data were encrypted to avoid potential data security risks. In the future, JD.com will ’ continue to carry out regular information security rectiﬁcation according to the Group s rules, and further safeguard customer privacy JD.com has launched several products and measures to help the seniors overcome the “digital divide” and experience the more convenient life brought by technological innovation. Special service line for the seniors: in 2021, JD.com launched a special service line for the seniors, staﬀed with excellent customer service agents to provide millions of consultations for the seniors throughout the year. JD.com App Senior Edition: JD.com App has launched “ Senior Mode, ” which simpliﬁes the information and enlarges font size, making it easy to read and use. With system updating, more and more users enjoy the easy- to-use switch with just one touch. We provide more secured, aﬀordable, convenient, and diversiﬁed services and as well as data information security. create a more favorable shopping experience for the seniors. JD.com-ZTE collaborates to innovate the smartphone for the seniors: “ jointly develop a caring mobile phone for the seniors, the 5G time machine JD.com and ZTE cooperate deeply to ” Blade V2021, which is dedicated to solving the pain points of the seniors in using smartphones, designing smartphones with more considerations, and helping seniors enjoy the more convenient life brought by technological innovation. JD.com’s “Care-for-the-Seniors Shopping Festival,” namely “Nuanyang Action”: JD.com fully integrates retail, logistics, health, and technology service businesses. By relying on the advantages of supply chain and digital technology capabilities. JD.com works with government departments, social organizations, and partners to create a new standard covering whole-scenario and one-stop care scheme for the seniors. JD.com continuously upgrades its multi-functional commodities and strengthens service capabilities for the seniors, enabling their consumption needs covering household, healthcare, online and oﬄine, mental health and fashionable lifestyle, etc., thus helping them overcome the digital divide, embrace fulﬁlled lives, and joyfully live at home without worrying about medical care and provisions. 2021 JD.com Environmental, Social and Governance ReportPromoting Good Consumption 39 40 Part III Promoting High-quality Development JD.com exerts its growth momentum as a new type of real economy enterprise, and continuously promotes technology innovation and connects with industrial scenarios. JD eﬀectively drives the digital, intelligent, and low-carbon transformation of the upstream and downstream partners throughout the industrial chain, and will help the real economy improve the quality, decrease the cost, and increase the eﬃciency. 2021 JD.com Environmental, Social and Governance ReportPromoting High-quality Development41 Supplier Management Supplier Admittance and Compliance Management 42 ’ JD.com establishes a rational and eﬀective supplier management dedicated to creating a transparent business environment with mechanism and manages the suppliers through its specialized our partners. JD s Procurement and Expenditure Department procurement and expenditure department. All the supplier candidates must complete a registration for the Collaboration Platform on Recruitment and Procurement. “ JD.com Supplier ” resolutely resists any forms of bribery and corruption. Within one year from the date of resignation, JD.com shall cease any business dealings with personnel that have resigned from the Following the screening process covering initial contact, procurement and expenditure department. We encourage our inspection, sample testing, and on-site investigation, only business partners to actively report instances of corruption to suppliers who meet the requirements are selected for the long JD.com s supervisory department upon discovering any act of ’ list or short list of the project. We also set speciﬁc screening misconduct among our employees. After investigation, if the requirements and shortlist qualiﬁcations for suppliers bidding for reported cases are veriﬁed, the whistleblower will be rewarded each category and project. Only those who pass a comprehensive according to the JD.com Whistleblower Protection and Reward evaluation can be incorporated into procurement operations. Scheme. In accordance with suppliers ’ qualiﬁcations and service delivery ’ ’ JD s Procurement and Expenditure Department requires In addition, JD.com has implemented a series of measures to encourage suppliers to improve their performance in respect to environmental and social impacts: capacity, and incorporating with JD s business perspective, all business partners, including suppliers, to sign the Anti- strategic goals as well as past cooperative experiences with Commercial Bribery Agreement. We inform our business partners certain suppliers, JD manages its suppliers by categories and of the integrity policy by issuing holiday integrity announcements, grades. At the same time, JD.com continues to follow up the organizing regular anti-corruption compliance information whole process of suppliers contracts fulﬁllment, tracks and sessions, and other forms of measures. JD forbids its business ’ quickly solves relevant risks raised from the demand issuing partners to provide local specialties, cash-ﬁlled red envelopes, departments, strictly conducts a quarterly assessment of and other types of gifts to our employees. We also prohibit our suppliers, and implements rewards and punishments accordingly. business partners from entertaining or oﬀering other kinds of JD.com adheres to the concept of mutually beneﬁcial cooperation and integrity management, which always insists on placing the interests of clients, business partners, and employees in a priority “ ” position. Achieving success the right way is the long-standing business philosophy that we consistently uphold, and we are illegitimate gifts to our employees. Whether our employees accept or not, the involved business partner will permanently lose the cooperation opportunity with JD.com. We will deal with the dishonest business partner according to the Anti-Commercial Bribery Agreement. We will also disclose the dishonest information on the Sunshine Integrity Alliance platform. Regulation Document Regarding Supplier Management Bidding and Procurement Business Management Rules, Tripartite Performance Appraisal Procedure, Supplier Quality Exceptional Handling Procedure, Supplier Agreement Honoring Feedback and Handling Process Identiﬁcation and Management of Environmental and Social Risks of Suppliers Throughout the process of supplier screening, review, and authorized environmental impact assessment certiﬁcate and management, JD.com fully considers environmental, social, other licensing documents during the screening process. When and governance factors and formulates speciﬁc standards it comes to the rights and interests of labors and employees, and restrictions based on diﬀerent types of suppliers. For especially the safety related issues, suppliers need to take example, for production-based suppliers, especially those appropriate measures to guarantee the occupational health of who have a substantial environmental impact, must have the their employees. 1 2 3 4 5 6 Since 2020, JD has formulated green procurement management to ensure the eﬀectiveness of JD Logistics procurement practices, and consistently conducts the Green Stream Initiative by incorporating the concept of environmental protection and green operation. In the bidding and pricing process, suppliers ’ contribution to environmental protection can be served as a bonus. Meanwhile, the penalties for violations of green management rules are clariﬁed in the contract terms. Concerning the supplier performance evaluation, the corresponding environmental assessment clauses are added regarding green procurement categories. Suppliers are subject to our supervision in environmental protection, resource conservation, corporate social responsibility, and sustainability. JD.com strictly declares that it is forbidden for our cooperating suppliers to engage in illegal employment, violate labor laws, and engage in other illicit behaviors. Based on the circumstances, the suppliers will be listed as entities with whom JD.com shall never cooperate. JD formulated a negative list mechanism for green procurement suppliers. For suppliers shortlisted in the green procurement resource system, JD shall suspend or terminate the procurement contracts if any circumstances deﬁned in the negative list or other environmental problems have occurred. If the Group incurred any loss because suppliers deliberately concealed their violation of environmental laws and regulations, JD has the right to protect its own interests in accordance with relevant laws and regulations. JD organizes suppliers to participate in the SBTi training so that they can have a better understanding of carbon neutrality-related knowledge. JD also conducts carbon emission data collection and model construction to monitor the suppliers progress in achieving carbon emission control goals. ’ JD reduces its cost of disposable plastic packaging by adopting various means of leasing, purchasing, and using recyclable packing boxes, insulation cases, circular transshipment bags, etc., to continuously improve its green supply chain performance. 2021 JD.com Environmental, Social and Governance ReportPromoting High-quality Development 43 44 Supplier Empowerment and Development Policy ’ s economic ’ JD continues to support local and SME suppliers in the Meanwhile, we actively support women bidding and procurement procedures with extra support on empowerment, women s leadership promotion, and women- local featured agricultural products and signature industry owned business development along our supply chain. In development. We help the signature industrial belts to equip respect to supplier admittance and selection, we also give extra with parcel pick-up capacity and introduce local packaging focus on female leadership factors on the top of suppliers manufacturers. While promoting the logistics parcel pick-up capacity and business qualiﬁcation. business, JD has stimulated the rapid development of regional signature and packaging consumables industries. Promoting the Development of the Real Economy ’ JD has always insisted on the shared value of “ boosting the real economy with JD ’ s identity as a real economy enterprise. ” Relying on our solid infrastructure, digital intelligent social supply chain with high eﬃciency and innovative technical service capabilities, we have persistently explored new growth momentums for millions of our partners, promoted the high-quality development of the real economy, and created more value for the society while accelerating our sustainable development. Improving Public Governance Eﬃciency Empowered by JD’s Digital Intelligent Supply Chain Infrastructure Financial Services JD Cloud has provided comprehensive technology solutions for 814 ﬁnancial institutions by leveraging the digital intelligent ﬁnancial cloud that connects the industrial supply chain. These institutions include banks, insurance companies, funds, trusts, and securities companies. The technology solutions help them establish underlying cloud intrinsic capabilities. The solutions cover data and intelligence, business innovation, business scenario expansion, industry-ﬁnanced integrations, intelligent risk control, and full scenario marketing and operations capabilities that align with their strengthens and future needs in digital transformation. JD Intelligent Customer Service cooperated with Jiangnan Rural Commercial Bank to launch VTM6 digital bank tellers. JD has created the ﬁrst “ digital bank teller ” in China that can independently handle real bank transactions, which has achieved a breakthrough in the application of digital tellers from traditional consultation, inquiry handling, and navigation to the actual banking business. This project reshapes the user experience and service mode of bank outlets, greatly improves the capacity and eﬃciency of remote banking services, and reduces the operating cost. Business challenge In the banking industry, traditional bank branches have some pain points, such as high operating costs, long queuing in rush hours, and insuﬃcient reception capacity of remote tellers, which restrict business expansion. Project value The digital teller has formed a multi-channel, full-scenario, end-to-end VTM digital teller solution by connecting with VTM and agricultural aid appliance. JD Cloud has provided comprehensive technology 814 solutions for ﬁnancial institutions, including banks, insurance companies, funds, trusts, and securities companies 6 VTM refers to Video teller machine. 2021 JD.com Environmental, Social and Governance ReportPromoting High-quality Development Promoting Digital Transformation of Various Industries by JD’s Technological Capability 46 JD Internet Hospital of the First Aﬃliated Hospital of Henan University of Traditional Chinese Medicine Technological Capabilities Artiﬁcial intelligence The total number of registered patients was nearly 150,000 JD.com AI NeuHub open platform, intelligent HMI platform “ YanXi ” and “ JD Smart Cloud ” solutions which help enterprises create applications targeting various industrial scenarios. 45 Public Healthcare JD empowers the public healthcare by leveraging its core competence in technology, utilizing its advantages in digital intelligence technology and supply chain infrastructure to establish a graded diagnosis and treatment system, optimizing the medical resources distribution, reducing medical expenditure, improving basic healthcare services, and providing the public with high-quality, comprehensive, and inclusive healthcare products and services, driving more people to pursue a healthy life. We have cooperated with many public hospitals to develop smart medical projects. JD Internet Hospital of the First Aﬃliated Hospital of Henan University of Traditional Chinese Medicine was jointly established by JD Health and the First Aﬃliated Hospital of Henan University of Traditional Chinese Medicine, which provides online and oﬄine integrated healthcare services for patients. By the end of 2021, the total number of registered patients was nearly 150,000, and the services covered 31 provinces, municipalities and autonomous regions in China. In response to storms, ﬂoods, and epidemic relief requests, we eﬀectively help tackle the challenges in seeking medical treatment. In addition, JD Health has jointly established Internet Hospitals with Peking University Shougang Hospital, autonomous regions in China Tianjin University of Traditional Chinese Medicine First Aﬃliated Hospital, Cangzhou Central Hospital, Taicang First People s Hospital, and other Grade 3AAA hospitals (top tier hospital in China), and innovated online and oﬄine integrated medical and healthcare service system. ’ The services covered 31 provinces, municipalities and Cloud computing Blockchain JD.com has established more than 70 70 data centers, centers worldwide. city clouds and nearly edge data 100 JD.com “ ” Zhizhen Chain Anti-counterfeiting Traceability Platform has served over covering over 400,000 entry data linked to the blockchain and over kinds of goods from 1,900 10 million 1,500 brands, with billion- enterprises, “ quality traceability ” inquiries from consumers. IoT ’ JD.com s IoT operating system serves for many institutional clients, such as government, central State- owned enterprises, and diﬀerent industries covering energy, transportation and logistics, ﬁnance, real estate, food safety, etc. By working with more than industry partners, the system accesses more than kinds of smart devices, connects million highly active devices and serves 4,000 26 million families. 1,000 220 2021 JD.com Environmental, Social and Governance ReportPromoting High-quality Development 47 Empowering Industries Automobile Industry 48 Based on cutting-edge technologies such as artiﬁcial digital intelligent solutions with supply chain at its core for intelligence, cloud computing, big data, internet of things, etc., diﬀerent industries. and relying on years of experience in supply chains, JD provides Helping the high-quality development of industries with digital intelligence technology JD Technology has now become a core platform of JD.com to targeting diﬀerent industries. Based on the digital intelligence provide technical services to external clients. With profound technology capability, JD Cloud has provided digital solutions industrial know-how, excellence in risk management, user for more than 1,500 large enterprises and over 1.5 million operation and enterprise service, JD technology can provide SMEs, helping thousands of industries achieve high-quality customers with diversiﬁed technology services including development and realizing the digital transformation of real customized solutions and product research development economy. Empowering the sustainable industrial development with JD Logistics’ integrated supply chain JD Logistics integrates a connective, eﬃcient and more ﬂexible quality logistics services covering all business scenarios, from end-to-end logistics network by taking the integrated supply warehousing to distribution, and from manufacturing to end- chain as its core competence. By leveraging our in-depth users. At the same time, we enable various industries, including business experiences, industry insights, and the automation, FMCG, apparel, home appliances and furniture, 3C, automotive digitalization, and intelligentization capabilities, we provide and fresh produce, to reduce cost and create more values for all our customers with one-stop supply chain solutions and high- the industries. Digital Transformation of Traditional Industries Manufacturing Industry JD C2M optimizes and upgrades the manufacturing supply chain BAIC and JD.com cooperate in the digital procurement of industrial products, intelligent cockpits, and autonomous logistics ’ vehicles, accessing the cloud, digital marketing, and other aspects to deepen BAIC s digital transformation and upgrade comprehensively. For example, BAIC Data collaborates with JD Cloud to build a hybrid industrial cloud, the BAIC Hybrid Cloud Platform (BPStack) and the Digital Marketing and User Operation Platform, which provides BAIC with various cloud products and services such as databases, internet middleware, hybrid cloud management, etc. The platforms also provide BAIC with services ’ such as infrastructure leasing and hardware equipment hosting, signiﬁcantly improving BAIC Group s IT management capability and successfully saving 50% of IT costs. In June 2021, BAIC ’ s online shopping mall App built by JD Retail Cloud was launched, which sold hundreds of vehicles within half a year. This system integrates the information of thousands of BAIC oﬄine stores nationwide. Consumers can not only see cars online, but also make an appointment to test drive and pick up cars at any oﬄine store. They can also enjoy the whole life cycle services such as car purchase, maintenance, repair, and used car replacement. JD Logistics helps Volvo ’ ’ s after-sales spare parts supply chain to reduce cost and increase eﬃciency. Based on JD Logistics fundamental supply chain network and big data technology, JD Logistics helps Volvo achieve the optimal supply chain and inventory structure, focusing on warehouse network planning, inventory management, last mile delivery and other ﬁelds, eventually we help Volvo simulate the optimal cost structure and creates an intelligent replenishment verifying mode. According to the data collected from Xi an pilot project, the satisfaction rate toward Volvo s order delivery increased along with a signiﬁcant increase in ’ ’ the annual inventory turnover. This project realized the accurate prediction backed by big data and visualized control of the whole process and supported multi-channel business development. JD C2M intelligent manufacturing platform is a customer-oriented infrastructure that customizes production based on customers demands. Using our in-depth ’ insight on consumer needs and market trends, the relevant product design, production and circulation can be reversely customized through this platform, “ production so that manufacturers can accurately respond to consumers, realize ” “ ” by sales and production on-demand, greatly shorten the R&D process for new As of the end of 2021, products, improve the performance of new products, reduce turnover costs JD has built C2M reverse supply chain JD.com helps BAIC and inventory risks. While helping brand owners improve their new product development capabilities, it also strengthens the overall resource eﬃciency of society and facilitates the transformation and upgrading of industrial for more than 1,200 manufacturing development. As of the end of 2021, JD has built C2M reverse supply chain for enterprises more than 1,200 manufacturing enterprises. ’ Through JD Cloud s C2M reverse customization solution, Deyi Dairy has set up a business middle platform covering online and oﬄine omni-channel, which can serve for customer insight collection, target customer positioning and precise marketing through data assets depositing. successfully save 50% of IT costs sell hundreds of vehicles within half a year 2021 JD.com Environmental, Social and Governance ReportPromoting High-quality Development 49 2021 JD.com Environmental, Social and Governance Report 50 Engineering Industry In 2021, JD Industry launched a series of new-generation infrastructures for industrial supply chain management, such as an enterprise distribution center, Jinggong Cabinet, and smart mobile warehouses. So far, JD Industry has deployed over 200 facilities nationwide to help solve the pain points faced by industrial enterprises. Through the introduction of smart mobile warehouse, JD industry promotes the integration of digital procurement and infrastructure, which helps solve the challenges owing to the remote of construction sites faced by engineering and construction industry, such as diﬃculties in achieving accuracy in procurement planning, onsite management of material consumption and distribution, and inventory dynamic management. Our solution greatly improves the eﬃciency of material supply at the construction site and ensures the whole “ ” construction to proceed as scheduled. The ﬁrst smart mobile warehouse has been put into use in the Hanzhong-Bazhong-Nanchong High-speed Railway construction project of Sichuan Chuanjiao Road and Bridge Co., Ltd. The infrastructure has been widely used in many real enterprises such as Angang Steel, Sinochem and the Three Gorges Group, providing concrete support for industrial enterprises to enjoy the distinguished values brought by intelligent supply chain. By the end of 2021, JD Industry has deployed over 200 facilities nationwide The ﬁrst “ smart mobile warehouse ” has been put into use JD Cloud and Zoomlion jointly built the industry AI expert diagnosis system for pumping machinery. Relying on our intelligent HMI platform YanXi, the project realizes AI-driven industrial automation and intellectualization, which greatly improves equipment fault diagnosis eﬃciency ” and ensures the continuity of industrial client s construction projects, and helps the after-sales team “ ’ s ﬁrst “ ” ’ save 4,200 hours of troubleshooting every year, shortens the time spending in single equipment maintenance by more than 20%, and creates indirect economic beneﬁts of more than RMB 2.3 million for a single product line. “AI expert diagnosis system for pumping machinery” Empowering SMEs Through a complete service portfolio and various speciﬁc measures, JD.com has helped SMEs strengthen their supply chain, enhance their innovation ability, and uplift their development momentum. In the ﬁeld of enterprise services, JD Cloud has provided digital solutions based on full-stack cloud service products for over JD Cloud has provided digital solutions based on full-stack cloud service 1.52 million SMEs, helping them achieve digital intelligent transformation. Besides, to lower the threshold of the “ ” 1.52 products for over million SMEs helps the after-sales team save 4,200 hours of troubleshooting every year shortens the time spending in single equipment maintenance by more than 20% procurement service platform. By digitalizing the procurement process, eight core procurement service capabilities (quick selection of products, quick bargaining, quick contract signing, quick order placing, quick payment, quick invoicing, quick reimbursement, and high-quality service) have been strengthened to help SMEs reduce cost. As a result, SMEs can enjoy the beneﬁts brought by digital technology without extra investment. digital procurement for SMEs, JD JOYBUY has established a “ quick procurement, easy management and one-stop digital ” Promoting High-quality Development 51 52 Industrial Belt “C.E.O” Plan Under JD’s Private Label Brands In addition, under JD ” “ industrial belt C.E.O ’ s private label brands, we launched the industry, and collaborate with industrial belt partners heading (Co-Create, Empower, Open) plan at for intelligent manufacturing, so as to deepen the penetration the end of 2020, and fully promoted the transformation and of the industrial Internet alongside the industrial belt, and upgrading of SMEs on the industrial belt, reducing costs and at the same time bring more cost-eﬀective factory sourced increasing eﬃciency. Relying on the digital intelligent social ’ s private label brands expand their capabilities supply chain, JD goods to consumers. By December 2021, the industrial belt “ ” ’ plan under JD s private label brands covered 70% of the C.E.O in product selection, brand incubation, user cultivation and national industrial belts. In 2021, it promoted 61 manufactured channel penetration to high-quality factories. They fully goods with sales exceeding RMB 10 million and helped high- empower factories to accomplish digital transformation, quality agricultural products including over 800 tons of rice and accelerate the digital intelligent upgrading of the manufacturing miscellaneous grains to expand their national market. By December 2021, the industrial belt covered 70% “ of the national industrial belts ” ’ C.E.O plan under JD s private label brands promoted 61 manufactured 10 goods with sales exceeding RMB million helped high-quality agricultural products including over 800 tons of rice and miscellaneous grains to expand their national market Serving SMEs through “Mantianxing Project” In 2020, JD collaborated with China Ministry of Industry and ’ Information Technology (MIIT) s SME Development Promotion an industrial ecosystem. By the end of 2021, we have served over 27,000 provincial-level SMEs, accounting for nearly 70% Center to launch a Mantianxing Project targeting to SMEs. of all nationwide qualiﬁed SMEs. Among 4,762 specialized “ ” In 2021, the Mantianxing Project continued to implement and innovative Little Giant enterprises, accumulatively “ ” in 28 provinces and cities to create a customized service model of one city, one strategy and stimulate SMEs growth ’ over 3,200 have received our services. We also created a “ ” digital workbench to provide SMEs with user-friendly digital “ “ ” ” impetus. Under this project, we invited SMEs to visit our application tools, lower their threshold of digitalization, help company, sponsored several SME seminars, and improved SMEs overcome the digital gap and achieve lower cost and “ ” the talent training system for SMEs. We also launched relevant higher eﬃciency management. plan to empower specialized and innovative SMEs to build JD.com have served over 27,000 provincial-level SMEs Among 4,762 specialized and “ ” innovative Little Giant enterprises, accumulatively over 3,200 have received our services Zhida Technology As shortlisted in the third batch of specialized and innovative “ Little Giant ” enterprises by the MIIT, Zhida Technology has been long devoted in product development with its strong technical capabilities. However, due to its long-term service to automakers, it lacks experience in the end user market, and there is also not an existing well-operated channel to accurately reach out customers. Zhida Technology, by cooperating with JD.com, has successfully unlocked the password to explore the end user market. “ JD.com, with its strong supply chain capability and infrastructure nationwide, eﬀectively assists Little Giant enterprises ” “ ” to build high-quality customer service and strengthen their supply chain. By leveraging the competence cross online and oﬄine channels, JD successfully help Zhida Technology quickly establish a nationwide channel system with full regions and customer coverage. At the same time, JD has more than 500 million high-quality users, who are highly overlapped with “ the target customers of Zhida Technology and provides strong support for Zhida Technology to quickly break the ice in ” the end user market and strengthen its brand inﬂuence. Overall, JD.com assists Zhida Technology to open an incremental market and achieve a nearly 10-fold increase in turnover. 2021 JD.com Environmental, Social and Governance ReportPromoting High-quality Development 53 54 Part IV Cultivating Talents JD.com has always been committed to providing a safe workplace and ideal development space for every employee. Meanwhile, we strictly protect employees’ rights and interests and provide various welfare and caring projects. JD.com continuously concerns about the talent development and ensures the best allocation of talents on the right position. We attracted the diversiﬁed talents and established a comprehensive professional team to lay a solid foundation for JD to achieve a long-term success. 2021 JD.com Environmental, Social and Governance ReportCultivating Talents55 56 High-quality Employment Human Resource Compliance Management As stated in the notice on the Employment Promotion “ 14th Five-Year Plan for ” issued by the State Council, the program has attracted many excellent doctoral students from the leading universities domestically and abroad to join Employment and Labor Standards goals to achieve by 2025. In 2021, JD.com continued to play providing great momentum for JD s technology innovation. and follows the principles of relevant international human prohibited. had exceeded 420,000 7 . JD.com has always placed a high value Modernization of Agriculture and Rural Areas regards the equal recognized by the Central People s Government of the PRC, on JD.com respects and protects employees ’ rights and interests clearly stipulated that hiring individuals under the age of 16 is rights rules, including the Universal Declaration of Human Rights and the international labor conventions approved and ’ the premise of observing the laws and regulations of the areas where it operates. JD.com regulates employment according to law, and establishes labor and employment management rules including labor contract management, employee recruitment, vacation, education, and training, etc. In 2021, the company revised the management rules such as JD.com Employee ’ s employment JD.com adheres to the principles of openness, fairness, Handbook to optimize the company impartiality and equal recruitment, signs labor contracts in management mechanism further. accordance with the law, forbids any forms of discrimination, treats employees of diﬀerent countries, nationalities, genders, religious beliefs and cultural backgrounds equally, actively provides employment opportunities for the disabled groups, guarantees the rights of female employees, ensures the men and women employee to enjoy the equal pay for equal work, strictly implements the maternity leave regulations for female employees, and guarantees the equal legal rights and interests of every employee according to law. To prohibit the use of child labor and forced labor, JD.com Employee Handbook strictly deﬁned the relevant employment qualiﬁcations, and The Code of Business Conduct and Ethics provides clear regulations on anti-discrimination, harassment, health and safety, personal privacy, etc., and eﬀectively protects employees interests and beneﬁts. ’ The Customer Service Center in JD Retail set up a specialized department recruiting people with disabilities. In 2021, 186 disabled employees hired by JD served in Suqian, Yangzhou, and Chengdu. the overall stability of the employment and the steady JD.com. Up to date, the proportion of staﬀ holding doctorate improvement of the employment quality are the principal degrees in the JD Explore Academy has been approaching 50%, ’ “ the role of employment stabilizer. As of the end of 2021, the number of employees of JD.com s listed and non-listed entities ” ’ The State Council ’ “ 14th Five-Year Plan for Promoting the s ” on talent acquisition and development. In the past three years, 358 jobs have been opened to fresh graduates, providing nearly 40,000 job opportunities, and specialized training programs have been developed to empower young talents to achieve a more fulﬁlled career. In addition, JD.com continues to provide a broader and more inclusive scientiﬁc research platform for professionals. So far, JD.com has built up a well-established professional team composed of over 500 experts with doctor ’ s degree experts and 18,000 R&D professionals. JD launched the ” “ Doctoral Management Trainee program in 2017. Since then, development of farmers and rural areas as a strategic priority. The number of front-line employees of JD.com reached more than 300,000, 80% of whom are from the Chinese rural areas. By giving them a solid living guarantee and stable income, JD.com drives forward the employment of rural population and promotes the rapid development of the livelihood and economy in rural areas. Moving forward, based on its identity as new real economy enterprise, JD.com will be committed to promoting the stable and high-quality employment on a larger scale. The number of employees of JD.com ’ s listed and non-listed entities has exceeded 420,000 500 So far, JD.com has more than experts with doctor ’ s degree In the past three years, 358 jobs Providing nearly 40,000 job have been opened to fresh graduates opportunities R&D professionals exceed 18,000 people The number of front-line employees of JD.com reached more than 300,000 The proportion of staﬀ holding doctorate degrees in the JD 80% of front-line Explore Academy has been 50% approaching employees are from the ’ China s rural areas 7 The statistical scope of �total employees of JD.com� is the total number of full-time employees and part-time employees of listed companies and non-listed companies under JD.com. 2021 JD.com Environmental, Social and Governance ReportCultivating Talents 57 2021 JD.com Environmental, Social and Governance Report 58 Internal Communication Mechanism of Employees Human Resources Management JD.com respects the demands and opinions of every employee and globahrssc@jd.com to collect employees ’ opinions, and the and is persistent in strengthening the construction of the internal HR colleagues from the Group or local level will follow up to get communication channels and ensuring the good operation the problems solved. of the employee rights protection system and mechanism. By setting up various channels and approaches, including the employee service hotline 400, bigear@jd.com, the Group ’ trade union, and the Group s supervisory department, etc., we s ’ consistently optimize the mechanism for employee consultation and complaint handling. We ve greatly promoted response eﬃciency resulting in a systematic improvement in the issue ’ ’ JD s ﬁrst collective bargaining negotiation and workers ’ representative congress was held in November 2021. JD ’ s commitment to the implementation of relevant laws and ’ regulations regarding workers participation and organization of trade unions, proposed in the Trade Union Law of the PRC and the Labor Law of the PRC was well demonstrated through this event. The legal procedures and regulation system handling process and closed-loop management eﬀectively ’ tackling employees concerns. We have set up the varying regarding employees ’ Occupational Health and Safety ’ occupational JD.com has been committed to taking employees health and safety as the top priority and provides a complete welfare system to guarantee a safe and healthy workplace for every employee. Taking JD Logistics as an example, the relevant management systems and monitoring processes that have been formulated include Quality, Environment, Occupational Health and Safety Monitoring and Measurement In 2021, JD.com ’ s sub-groups and business lines organized 20,809 training sessions problem-solving mechanism in terms of the risk level and the impact of certain incidents. For ordinary incidents, the feedback will be provided within 48 hours; for emergency incidents, the response will be given within 1 hour, as for the feedbacks on the investigation for special or momentous events will be provided to the involved employees within 7 working days. For overseas employees, two mailboxes have been set up, jdw_radar@jd.com Employee Satisfaction right in collective bargaining was clariﬁed. Control Procedure, and Environment, Occupational Health, Meanwhile a series of collective negotiations were held on labor remuneration, safety, insurance and welfare, vocational skill and Safety Operation Control Procedure , etc. In addition, its “ Occupational Health and Safety Management System has ” training, and other key issues. As a result, a draft of the collective been certiﬁed by authoritative organizations. In addition, contract was developed. The founding of a trade union and negotiation mechanisms plays a positive and constructive role in safeguarding the rights and interests of employees and JD.com conducts safety drills for all employees twice a year, to strengthen employees ’ emergency handling ability and further improve the company s safety awareness, improve personal ’ thoroughly responding to concerns from employees at all levels. emergency management. To continuously improve employees ’ experience and create catering (employee restaurants, coﬀee shops, etc.), travel a favorable workplace, JD.com regularly conducts a quarterly (shuttle bus, free taxi service during commuting), supporting satisfaction survey among employees. In 2021, the survey facilities (supermarkets, gymnasiums, etc.), oﬃce environment conducted in the Beijing headquarters and regional oﬃces (oﬃce appliance, hardware, functional areas) and many other showed that the employee satisfaction rate was as high as aspects. In addition, JD.com will make pertinent improvements 4.36/5, demonstrating a quarter-on-quarter increase. The on low-scoring service items, publicize the optimization result survey mainly focused on the satisfaction toward various to the employees and work with the operation team to carry services provided to employees in the workplace, including out random quality checks. Employee Training and Talent Development Employee Training JD.com is convinced that talents are the company ’ s highest- valued assets. JD.com constantly provides high-quality training to facilitate employee development and creates a career development platform to satisfy the diversiﬁed interests of employees. In 2021, JD.com s sub-groups and business lines ’ organized 20,809 training sessions and developed 10,262 new training courses, with total sign-ins of 160 million person-times and 16,000 daily active users. 10,262 Developed new training courses 160 Total sign-ins reached million person-times 16,000 daily active users Cultivating Talents 59 60 Female Employee Development and Leadership Empowerment Employee’s Hobby Community JD.com highly values women employees ’ health and career development. By inviting numerous internal and external guest speakers, such as Olympic champion Deng Yaping and the champion of JD.com Hackathon Yu Bingjing, etc., to organize various themed sharing sessions on women empowerment, such as personal inspiration stories, leadership experiences, scientiﬁc research, etc. So far, about 10,368 women employees have been empowered in JD. Furthermore, JD possesses 851 female lecturers, accounting for 49% of all lecturers. Talent Development System About 10,368 women employees in total have been empowered in JD JD.com actively develops hobby communities for employees, and establishes 63 internal Communication Networks with “ ” diﬀerent focuses, covering interests and hobbies, friend- making, technology sharing, etc. The Communication “ ” Network gets annual voluntary posts reaching more than 72,000 pieces, showing great activeness and eﬀective interaction, creating a good internal communication channel for employees. Big Boss “ The Communication Network ” gets annual voluntary posts reaching more than 72,000 pieces Comprehensive Incentive System Diversiﬁed Talent Training Since the Big Boss project was launched, employees enthusiasm and organizational innovation have been greatly stimulated. The construction of the Big Boss system was further developed in 2021, laying a solid foundation for supporting diversiﬁed, ﬂexible business needs and the development of an increasingly growing organization. JD.com has always adhered to the concept of employee JD.com has launched diversiﬁed talent training solutions and success prior to business success. JD follows a contributor- carried out well-designed recruitment programs for diﬀerent “ oriented principle and rolls out the incentives to reward the target groups, striving to establish an ideal career platform ” employee contributors with the matched economic incomes and promotion opportunities, so that to fulﬁll employees ’ promoting the comprehensive development of talents. These ’ s Rising Star Program for professional programs include JD.com value and facilitate their career success while contributing to talents, the leadership training program TET, the DMT program the sustainable success of the Company. In 2021, JD builds for doctoral scientists, internship recruitment for on-campus “ ” a comprehensive incentive system to fully enable talent students, and the summer internship camp. “ ” JD RUN development with innovative measures. The adoption of the principles that endow the front-line decision-makers with authority allows JD to be more ﬂexible and rapidly respond the clients’ needs. At the same time, JD further clariﬁes and reﬁnes the evaluation principle ensuring controllable proﬁt and loss, optimizing the cost eﬃciency of each integral organization module. In terms of employee performance appraisal and incentive policies, Big Boss project has made great innovations, ensured the more diverse incentives and reasonable allocation scheme, and fully implemented JD’s “contributor-oriented” principle. Employee Beneﬁts JD.com always adheres to the philosophy of “ ” people-oriented, places the wellbeing of employees prior to the interests of enterprise, respects and rewards the value contributed by every employee. Employee Compensation System In 2021, all provinces, municipalities and autonomous regions insurances. JD.com actively responds to national policies. In in China successively issued the policies on the treatment of 2021, JD.com continued to pay the ﬁve social insurance funds work-related injury insurance. The measures for speciﬁc groups and one employee housing fund, and improved basic beneﬁt include workers who have exceeded the statutory retirement treatment such as work-related injury insurance. In addition, age to participate in work-related injury insurance programs, JD.com continues to improve the salary level of employees. etc. At the same time, many provinces and cities have adjusted From July 1, 2021, to July 1, 2023, JD.com plans to take two the bottom wage criteria and the maximum and minimum years to gradually increase the employees average annual ’ limitation of wage bases required to pay the various social revenue from a 14-month salary to a 16-month salary. 2021 JD.com Environmental, Social and Governance ReportCultivating Talents 61 2021 JD.com Environmental, Social and Governance Report 62 Family and Life Care Through the housing plan, grants for employees ’ ’ safeguards the health and wellbeing of employees families and ensures that employees can work happily and live healthily. children, extended maternity leave, and other programs and initiatives, JD.com Settlement Plan Love Relief Fund The Settlement Plan is a full-service welfare program. All employees who meet the seniority requirements can apply for an interest-free loan of up to RMB 1 million, when they buy the ﬁrst house in their working city. From 2018 to 2021, JD.com had oﬀered interest-free loans totaling RMB 750 million, and about 1,900 employees have beneﬁted. In addition, since 2016, JD.com has provided 2,537 welfare housing units for employees. ’ JD s Love Relief Fund aims to provide ﬁnancial support for employees and families in need. The scope of assistance covers the employees and their families suﬀering from serious diseases, ’ employees passing away or having disabilities, schooling continuity for deceased employees children, employees whose homes got destroyed, etc. From 2018 to 2021, a total of 1,491 in- kind supplies were provided, with a total value reaching RMB 61.48 million. Education Support program. Suppose employees unexpectedly lose their working capability or pass away due to diseases or accidental events, their children can apply to receive grants to ﬁnish their studies In 2021, 11 families have beneﬁted from the Employee ’ s Children Caring and Scholarship from kindergarten to college. “ JD.com actively responds to the Notice of the Oﬃce of the National Healthcare Security Administration on Doing a Good Job in Supporting the Maternity Insurance of the Three-Child Policy and other related policies and launched the company s welfare policy. First, JD.com ” covers the cost of giving birth to the third child in the medical security policy, which eﬀectively ensures the wellbeing of the three-child family. JD.com has also provided an additional 30-day ’ extra-long welfare maternity leave on top of the national and local legal welfare for women s fertility since 2015. Ever since the release of the State Council s ’ “ Decision on Optimizing Birth ” Policy to Promote Long-term Balanced Population Development , parental leave in all related provinces in China has been extended or added. JD.com actively responds to the call for national and local policies. As such, JD.com adjusted and improved the company s vacation ’ system as well as its leave application process. For provinces or cities where the relevant policies have yet been covered, employees can continue to extend maternity leave days in accordance with the welfare maternity leave scheme executed by JD.com. Therefore, the maternity-friendly policy of JD.com reached full coverage among employees. Since 2017, JD cooperated with Oriental Cambridge Education Group to set up a childcare center at the headquarters. As of the end of 2021, the nursery service beneﬁted more than 1,600 person-times. At the same time, JD collaborated with Etonkids, a high-end kindergarten brand, ’ ’ Maternity-Friendly Policy JD Children’s Education Workplace Welfare Pleasing Working Environment JD.com established two new self-constructed workplaces in 2021. Building No.2 of the Beijing headquarters was completed in October 2021. As a part of the headquarters park, the newly constructed park covered 530,000 square meters. The Southwest Headquarters Building was completed in August 2021. The building area reached 250,000 square meters, and the design incorporated elements. Furthermore, the exterior shape of the Southwest Headquarters Building is interlaced like the number 8. The overall design of these two buildings presents the concept “ Chinese Knot “ ” ” of low-carbon emissions and environment-friendliness, demonstrating a strong sense of technology, provides a pleasing and beautiful workplace for all employees. We built barrier-free infrastructure in these newly self-constructed buildings, including ramps, elevators, restrooms, and parking spaces, according to the design requirements of National Barrier-free Design Code, to provide more convenience for those with disabilities. Workplace Facilities ’ JD has set up the health counseling room, gyms, staﬀ canteen and cafeteria, baby-care rooms, children s playgrounds, and other healthcare facilities. JD arranges nearly 200 shuttle buses that serve more than 30,000 employees, while cooperating with online ride-hailing companies to provide free taxi service for oﬀ-work commuting. At the same time, JD continues to expand its contract with nearby merchants and retailers so that employees can enjoy various beneﬁts and ’ well-being in more consumption scenarios. JD is constantly making eﬀorts to promote JD headquarters welfare program among all facilities across the country. All-Staﬀ Sports Season JD organizes an annual Sports Season for its employees. By carrying out challenging competitions, JD attracts employees to build the kindergarten project together. More than 350 JDer the end of 2021. Employee Assistance Program (EAP) In 2021, JD continued to implement EAP care program. s children had been enrolled by with diﬀerent hobbies and from diﬀerent age groups to participate in cross-team recreational activities such as football, badminton, and e-sports. In 2021, a total of 13,000 employees participated in the Sports Season, contributing to the creation of a happy workplace of JD as well as a corporate value of teamwork and taking the challenge. Employee Caring Program During the traditional Chinese festivals, JD distributes customized welfare gifts to express holiday care to employees. In 2021, more than 800,000 welfare gift boxes for festivals were distributed, covering all JD employees. Cultivating Talents 63 64 Part V Safeguarding the Natural Environment Since the inauguration of the 14th Five-Year Plan period, China has actively promoted green development. The nation’s carbon peak and neutrality goals, as well as the more speciﬁc “1+N policy system,” give clear instructions toward a holistically green, low-carbon transformation of society. Contributing to the fulﬁlment of national dual carbon targets represents not only the responsibility of JD.com, but also an opportunity for JD to achieve stable and continuous success in the future. In 2021, JD.com exerted its supply chain capacity and the inﬂuence of industrial chain, actively responded to environmental challenges, and continuously enhanced JD’s environmental protection strategy. Relying on our business capability, we are committed to safeguarding nature, advancing green development with our more sustainable corporate operations, continuously developing a green supply chain, and further promoting green consumption among consumers. 2021 JD.com Environmental, Social and Governance ReportSafeguarding the Natural Environment65 66 JD.com’s Green and Low Carbon Target Support China’s Goal of Carbon Neutrality by 2060 JD.com’s Environmental Protection Strategy Green Operation Low Carbon Supply Chain Sustainable Consumption Green Oﬃce Green and Low Carbon Data Center Green Packaging Green Warehousing Green Products and Services Sustainable Consumption Advocacy Green Transportation Green Lifestyle Promotion Green Operation Green Oﬃce Oﬃce Space We are committed to building a green oﬃce space by continuously in 5,520 wireless routers, and the oﬃce areas deployed with promoting energy conservation and resource recycling through wireless infrastructure exceed 500,000 square meters. This reduces our oﬃce practices. the cost of the Premises Distribution System (PDS) and switches. Due to the intelligent operation and maintenance system deployed in the power distribution room in JD.com s oﬃce ’ building, the building s energy consumption and energy safety can be monitored online in real-time. Targeted energy-saving ’ ’ IDC computing storage resources are also constantly optimized. In 2021, JD s information technology department optimized 179 servers to save about 470,000 kWh of electricity per year and consequently reduce about 286.7 tons of carbon emissions. Paperless Oﬃce ’ ’ schemes can then be developed by integrating the system s In 2021, all JD.com ’ s regional headquarter parks deployed the analysis results. In 2021, all the traditional lighting lamps in rainwater storage tanks with a volume reaching 2,700 cubic public areas of Building No. 1 have been transformed into LED meters to facilitate rainwater collection. This deliberate design lamps, with a total of about 14,000 LED downlights replaced. The helps save the water resources and eﬀectively alleviate the lights in public areas can be turned on and oﬀ automatically by municipal drainage pressure, demonstrating the innovative water the central control system. The grid lights in the oﬃce area are management concept in line with “ ” Sponge City practice. JD.com being gradually replaced with LED panel lights, and the power headquarter buildings have also been equipped with a sewage consumption of a single lamp is reduced from 84W to 40W. After treatment station, which can achieve up-to-standard discharge the replacement, the lighting power consumption in the oﬃce of wastewater, and at the same time, facilitates the reuse of the area of Building No. 1 was reduced by 5,000-9,000kWh per day on partial reclaimed water after sewage treatment. It is estimated 8 , Meanwhile the average illuminance in the oﬃce area average increased from about 300Lux to about 450Lux, which can not only ’ reduce the energy consumption, but also improve the employees that more than 3,000 tons of water can be saved every month. With the application of inductive sensor faucets and water- saving toilets, the water consumption of restrooms will be further experiences in the workplace. Besides, more than 2,300 LED lamps reduced. Our micro-spraying technology for large-area irrigation in the basement of the headquarters have also been replaced with achieves a signiﬁcant water reduction in aﬀorestation irrigation. dimmable intelligent lamps, which can automatically adjust the area illumination and empower the low-carbon workplace with intelligent technology. Furthermore, the cooling of air conditioners in summer strictly maintains a 26-degree Celsius standard, which is uniformly dispatched by the central control system, and all panel setting temperatures are centrally controlled accordingly to reduce energy consumption in the workplace. We organize publicity campaigns daily for water-saving and electricity-saving in the whole workplace to strengthen employees awareness of saving resources. In October 2021, JD.com headquarters Building No.2 was partially put into use and obtained the three-star design certiﬁcation for green buildings. In the future, the experience of the headquarters green operations will be gradually applied to all JD s self-built workplaces, creating ’ ’ JD.com gradually optimizes the existing network structure to a greener and energy-saving workplace for all. create a completely wireless oﬃce environment. We have plugged 8 During 2021, about 14,000 LED downlights were applied in Building 1 of JD.com Headquarters, where 5,000 lighting hours were counted according to the criterion of serving the staﬀ for 8 working hours. The remaining 9,000 lamps were counted according to the actual lighting hours, including the lighting hours generated by overtime working staﬀs, and the actual light-out time of the Group were considered as the statistical benchmark. We have rolled out paperless oﬃce initiatives in many business As one of the ﬁrst batch of pilot companies, JD.com has fully scenarios, such as electronic contracts, electronic ﬁle archiving, implemented the practice of electronic invoicing. According electronic invoicing, etc., which not only greatly reduces tree to statistics, in 2021, more than 2.8 billion electronic invoices felling and carbon emissions, but also improves information were issued by JD.com, thus saving about 16,000 tons of management eﬃciency, and facilitates employees at a lower operational cost. daily work paper, equivalent to less felling of over 310,000 adult trees and reducing carbon emissions by 15,000 tons. ’ ’ JD s personnel documents are all signed electronically, ’ such as employees entry and exit process, renewal of labor contract, loan agreement for housing plan, tenancy agreement for welfare housing, etc. As of the end of 2021, employees of JD.com had signed more than 1.839 million documents online. Signing an electronic labor contract is not only beneﬁcial to environmental protection, but also can improve the eﬃciency of personnel management as well as employee within the company. ’ s services JD.com has been appointed as a pilot unit of electronic archives management by the National Archives Administration of China. Since January 2020, when it passed the acceptance of the government expert task force, electronic archiving has reduced the use of paper vouchers printing by nearly 5 million sheets each year, which is equivalent to saving 5,600 adult trees felling and reducing carbon emissions by 26 tons. In 2021, more than billion 2.8 electronic invoices were issued in JD.com Saving about 16,000 tons of paper 2021 JD.com Environmental, Social and Governance ReportSafeguarding the Natural Environment 67 68 Remote Work and Green Travel Since the outbreak of the COVID-19 pandemic, we have provided a remote working system for employees, which can save time and tangible costs occurring in employees commuting and business travel. In 2021, employees logged in ’ for work remotely through the VPN and SDP 9,213,820 times. 1,626,711 online meetings were held through the Joymeeting App, with 29,418,076 participants and 327,984 hours of meeting time, including 323,598 visitors from outside. At the same time, we promoted green travel and commuting among employees. We launched a strategic move with Didi and CaoCao online car-hailing platforms, aiming to reduce the carbon footprint of employees travel by ’ carpooling. In 2021, JD employees carpooling resulted in 209,000 orders (2-3 people to share a carpooling order), accounting for 90% of the total taxi-hailing orders, which greatly improved the employees eﬃciency and utilization rate ’ ’ “ of vehicle resources, while helping save the energy, reduce the emissions and eﬀectively alleviate the traﬃc congestion. Among them, the mileage of applied electric vehicles reached 3.233 million kilometers, reducing carbon emissions by about 258.7 tons. Besides, JD provides green commuting services for employees. There are about 200 shuttle buses in JD headquarters, including 80 new energy buses with an annual traveled mileage of 1.273 million kilometers, which reduces carbon emissions by about 742.2 tons. Green and Low-Carbon Data Center Cooperate with Huawei to Help Green and Intelligent New Infrastructure Adhering to advancements in technology and pioneering in green initiatives, JD.com has created energy-saving, emission-reduced and environment-friendly low-carbon data centers by innovating hardware technology, optimizing software capabilities, using clean energy, and reducing energy consumption intensity. New Generation Green Data Center To improve the energy eﬃciency of a data center, JD Cloud automatically switch the cooling mode according to the weather, establishes cooperation with Huawei. Relying on the experience and directly use the natural cold air of the data center to cool in data center technology innovation, construction and down the computer room. East China Data Center located in operation from both perspectives, a set of innovative solutions Suqian, Jiangsu province, for instance, the outdoor natural cold has been co-developed and successfully launched, including sources can be fully collected and utilized for nearly ﬁve months intelligent indirect evaporative cooling system EHU (Environment throughout the year, which helps signiﬁcantly reduce the From planning, designing, construction, to O&M (operation and and deploying a large-scale distributed photovoltaic power ’ “ ” maintenance), JD Cloud s new generation green data centers generation system. With the help of Jinggang, a software- Handling Unit) and medium voltage direct supply integrated operating cost. Medium voltage direct supply integrated power implement the low-carbon and energy-saving strategy in the hardware integrated virtualized architecture, the server power supply system SST, which strengthens the recycling of supply system SST can achieve high-intensity and high-eﬃciency whole product and operation life cycle. We use natural cooling performance gets improved by 30%, and large-scale application cold energy resources and improve the power supply eﬃciency. power supply. Compared with the traditional power supply and Intelligent indirect evaporative cooling system EHU applying AI comprehensive energy eﬃciency optimization technology, can distribution solution, its footprint gets reduced by 45%, while its power supply eﬃciency reaches as high as 95.3%, and the direct- current (DC) eﬃciency achieves as high as 97%. s Industrial Recognition of Green Operation and Carbon Reduction sources, deploy clean energy and revamp used equipment. of cold plate liquid cooling and heat recovery technologies We also promote energy and cold storage, optimize the achieves a 10% reduction of carbon emissions in total. Taking architectural layout, adapt designs in favor of low energy JD Cloud North China Data Center located in Langfang, Hebei consumption and eventually achieve a system-wide synergy province, as an example, this system can reduce the center eﬀect maximizing energy-saving and emission- reduction. heating costs by more than RMB 1 million while reducing With the principal supplies preformed in factories, produced carbon emissions by over 2,000 tons every year. at local level, and generated from recycled materials, JD Cloud ’ completes the rapid and low-carbon delivery of the data centers. In addition, based on the IoT + AI O&M platform, JD Cloud empowers eﬃciency optimization of data centers, waste recycling and the dynamic and controllable O&M management for equipment, helps reduce the employee s workload on O&M, ” ’ implements the SOP of O&M, and continuously improves O&M quality and eﬃciency. While maintaining rapid growth, JD Cloud has applied green energy to cloud computing to construct a clean, low-carbon, safe, and eﬃcient energy system by further promoting carbon reduction in infrastructure, using recycled energy, At the same time, intelligent algorithms and tools such as machine learning are introduced into the O&M to make the system more intelligent, to strengthen the overall computing performance. By deploying the inspection robots, the O&M system achieves 24-hour unattended inspection, from automatic inspection, fault location to automatic troubleshooting. Using technologies such as liquid cooling, the new green data center operated by JD Cloud achieved annual operation with a Power Usage Eﬀectiveness (PUE) lower than 1.1, 30% energy saving in infrastructure and 10% reduction in total carbon emissions. At the beginning of 2021, JD Cloud East China Data Center was “ successfully shortlisted as the 2020 National Green Data Center ” honored by the Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Commerce. At the 2021 CIFTIS (The China International Fair for Trade in Services), JD Cloud East China Data Center ” Green Development Service Demonstration Case, won the “ demonstrating its outstanding practice in energy saving and emission reduction. In November 2021, JD Cloud won the ﬁrst “ prize for the ” Data Center Science and Technology Achievement “ ” Award, which is known as the Nobel Prize of the IDC industry, by virtue of the industry-leading technology of liquid cooling and heat recovery system for rack cabinets in data centers. 2021 JD.com Environmental, Social and Governance ReportSafeguarding the Natural Environment carbon and energy-saving practices in packaging, warehousing, Goals 2021 (carbon peak and carbon neutrality goals) awarded more than 80% of JD s upstream brands will be motivated to develop 69 Low-Carbon Supply Chain Based on green and high-eﬃciency supply chain best practices, “ ” the Green Stream Initiative presents an important corporate JD.com has been oﬃcially selected as one of the Best its ﬁndings in exploring “ all-chain carbon reduction measures, sustainability strategy of JD.com, which carries out various low- Practices for Enterprises to Achieve Sustainable Development “ ” transportation, and recycling. With the continuous by Global Compact China Network, which represents the implementation of the Green Stream Initiative, the Group is eﬀorts and contributions made by JD.com in responding to “ ” committed to shaping a symbiotic ecology to empower the global compact principles and promoting global sustainable sustainable development of global business society. Relying on development. Green Packaging Regarding packaging design and use, JD.com always adheres to the principle of being green and sustainable and practices the concept of green packaging from the aspects of packaging material optimization, use of circular packaging, and the reduction of packaging. By the end of 2021, JD Logistics has driven the whole industry to reduce the consumption of disposable packaging by nearly 10 billion pieces. Packaging Material Optimization ” JD.com advocates the use of renewable green materials, develops delivery bags applying degradable materials to replace petroleum- based plastic bags, and is committed to promoting 100% renewable and replaceable packaging materials. It is estimated that by 2030, ’ environment-friendly packaging. Circular Packaging JD Logistics uses reusable circular delivery boxes, foldable thermal insulation boxes, and circular transshipment bags instead of disposable plastic packaging. By the end of 2021, circular packaging ” “ such as the Green Stream Boxes have been used 200 million JD Logistics has driven the whole industry to reduce times. In August 2021, JD Logistics carried out a pilot project of the consumption of disposable packaging by 10 nearly billion pieces circular packaging in Haikou, Hainan province, where more than 10,000 circular packaging boxes were distributed, and for the ﬁrst time the circular delivery bags were piloted to reduce the use of disposable PE packaging bags gradually. JD Logistics will strengthen the collaboration with the upstream and downstream partners to promote the use of circular packaging across the whole supply chain. Packaging Material Reduction As important ways to reduce the amount of delivery packaging from the source, the modes of direct procurement from the place of origin, direct delivery of primary packaging, and direct shipment of the aggregate orders are adopted. JD Logistics encourages upstream brands and enterprises to implement primary packaging by providing them with preferential policies for warehouse entry. Direct delivery of primary packaging has been adopted by thousands of SKUs from brands such as P&G and Unilever, which has demonstrated the great value in saving the packaging materials. “ The Green Stream Initiative ” boosts packaging reduction by engaging the brand partners and empowering the systematic green transformation of the industry. So far it has helped save 10 billion delivery cartons annually and motivates more than 200,000 merchants and hundreds of millions of consumers to act. During the Singles Day Grand Promotion in 2021, each parcel delivered to consumers reduced paper packaging materials by 210 grams. Each parcel reduced disposable plastics by 11 grams and 25 centimeters of adhesive tape on average thanks to the implementation of the Green Stream Initiative. Safeguarding the Natural Environment 70 It is estimated that by 2030, more than 80% of JD ’ s upstream brands will be motivated to develop environment-friendly packaging “ Green Stream Circular packaging such as the ” Box 200 has been used for million times So far, the Green Stream Initiative has helped 10 billion save delivery cartons annually and motivates more than 200,000 merchants and hundreds of millions of consumers to act During the Singles Day Grand Promotion in 2021, each parcel delivered to consumers reduced paper 210 packaging materials by grams. Each parcel reduced disposable plastics by 11 grams and centimeters of adhesive tape on 25 average 2021 JD.com Environmental, Social and Governance Report 71 72 JD.com Singles Day Grand Promotion Leads Sustainable Consumption Shopping festivals, such as JD ’ s Singles Day Grand Promotion, present great opportunities for us to promote environmental- friendly products and low-carbon logistics services. At the same time, we actively advocate the concept of sustainable consumption and a greener lifestyle. The logistic industrial parks of JD.com are equipped with the rainwater collection system. The collected rainwater will be used for aﬀorestation irrigation and road cleaning in industrial parks. Through the process such as heating supply and cooling, rainwater recycling as well measures throughout the logistics processes reduced carbon emissions by 26,000 tons during the event. In 2021, JD.com oﬀered massive types of products that meet the “ ” green consumption standards during the Singles Day Grand Promotion. As of November 7, consumers had purchased more than 3.5 million energy-saving products and more than 400,000 water-saving products from JD.com. On the aspect of logistics services, recycled packages were used 11.35 million times accumulatively during the shopping festival, which is equivalent to reducing the disposable garbage by 3,400 tons. At the same time, JD Logistics all-chain carbon reduction ’ “ the distributed photovoltaic installation and systematic ” energy transformation, and it plans to build another carbon-neutral demonstration park in early 2023. Green Warehousing The Group actively promotes more intelligent industrial parks to achieve zero carbon emissions through green infrastructure + carbon reduction technology innovation. ’ ’ “ ” JD.com s Xi an Asia No.1 Logistics Industrial Park has obtained the carbon neutrality certiﬁcation issued by the Beijing Green Exchange and Centre Testing International (CTI). Shenzhen CTI, a third-party certiﬁcation body authorized by the China National Accreditation Council for Conformity Assessment (CNAS), has veriﬁed the greenhouse gas emissions of the park are in line with the international standard ISO14064. According to the veriﬁcation results, the park has realized the application of a distributed photovoltaic power generation system and an energy storage system on the warehouse roofs and independently neutralized part of greenhouse gas emissions. With the support and guidance of the Beijing Green Exchange, the remaining emissions were oﬀset by purchasing Chinese Certiﬁed Emission Reduction (CCER). Hence Xi Asia No.1 Logistics Industrial Park ’ “ an ” has realized carbon neutrality in 2021, becoming the ﬁrst “ ” zero-carbon logistics park in China. Since 2018, JD.com had fully started the construction of a roof photovoltaic power generation capacity ecosystem, and comprehensively promoted the deployment and application of clean energy based on photovoltaic power generation in JD.com s smart industrial parks. By the ’ end of 2021, JD.com had completed the installation of photovoltaic power generation systems in the ﬁrst batch of 12 smart industrial parks. We expect to build a total photovoltaic power generation capacity of 1,000 MW in three years, which can provide adequate green energy for 85% of JD.com s smart industrial parks. In addition to ’ “ Xi an Asia No.1, Suqian Asia No.1 “ ” ’ ” located in Jiangsu province, is also actively promoting as the reuse of the reclaimed water, the consumption of circulating water in JD s intelligent industrial parks in ’ China amounted to about 22,750 tons annually. Regarding resource recycling, the management personnel of JD logistic industrial parks assign the roles and responsibilities of collection and recycling of diﬀerent wastes to various divisions. The property management team is mainly responsible for domestic garbage, including a designated collection of harmful pollutants and classiﬁed garbage disposal. The staﬀ canteen team takes care of the kitchen wastes. JD Logistics is responsible for recycling logistic waste such as packing boxes. With all eﬀorts made, JD aims to minimize the impact of wastes on the ecological environment. In addition, JD.com actively uses green supply chain technology to empower the green development of the industry. We provided the customized services for BMW Hefei to construct the regional aftermarket parts center, which has obtained LEED (Leadership in Energy and Environmental Design) certiﬁcation. BMW Hefei Aftermarket Parts Distribution Center has become BMW “ ” ﬁrst green warehouse of aftermarket parts in China that ’ s meets LEED certiﬁcation standards, providing an excellent Smart Industrial Park, model for green warehousing development. During the Singles Day Grand Promotion in 2021, JD Logistics all-chain carbon reduction ’ measures throughout the logistics processes reduced carbon emissions by 26,000 tons during the event Green Transportation To make the company ’ s footprints on the road greener, JD Logistics has successively deployed new energy vehicles in more than 50 cities across the country to replace traditional fuel cargo vans. By the end of 2021, the number of new energy logistics vehicles reached 20,000, which can reduce carbon dioxide emissions by about 400,000 tons per year, equivalent to the annual carbon dioxide absorption by 20 million trees. At the 2021 Global Smart Supply Chain Summit, JD Logistics launched the 5.0 version of autonomous delivery vehicles with markedly enhanced automation and speed performance. During JD.com Singles Day Grand Promotion, nearly 400 JD Logistics autonomous delivery vehicles were in service. These vehicles were distributed in over 25 cities across the country, and the number of delivered orders increased by over 200% compared with the same period of the last year. Autonomous delivery vehicles are incrementally becoming a vital supporting force in the last mile distribution and safeguarding the delivery of anti-epidemic supplies. In the coming two to three years, JD Logistics will continue developing and launching thousands of autonomous delivery vehicles to improve the user experience and logistics eﬃciency. 2021 JD.com Environmental, Social and Governance ReportSafeguarding the Natural Environment 73 74 Part VI Promoting Inclusive Development of the Society JD.com supports rural revitalization through the “Benfu Plan.” The Plan empowers SMEs with digital technology and develops various public welfare activities. It also facilitates the two-way ﬂow of resource elements between urban and rural areas, which enables more people to pursue a better life and promotes an inclusive society. 2021 JD.com Environmental, Social and Governance ReportPromoting Inclusive Development of the Society75 76 Public Welfare Concept and Policy JD Rural Revitalization “Benfu Plan” JD.com supports charitable activities through JD Foundation. Based on the online public fund-raising platforms such as “ “ ” Collecting Objective with Love and Nuan Dong Philanthropy, JD.com has launched a series of corporate philanthropy “ programs such as the Book Sharing Children s Book Donation ” ’ program. The main focus areas cover rural revitalization, rural education, inclusive medical care, anti-epidemic and disaster relief, etc. In 2021, the total amount of JD Foundation s donation ’ ” of targeted alleviation eﬀorts in rural areas, including supporting relevant industries, promoting consumption, enlarging employment, In 2021, the total amount of JD Foundation s donation exceeded ’ 120 RMB million Plan had driven the production value in rural areas to reach RMB 320 billion, which helped millions of farmers increase their income supporting entrepreneurship, giving donations, providing ﬁnancial support, empowering technology infrastructure, strengthening the healthcare system, etc. JD.com has initiated and promoted the Benfu Plan since October 2020. By the end of 2021, the Benfu “ ” “ JD.com attaches great importance to serving the development of agriculture, rural areas, and farmers. We have been devoted to the nation s poverty alleviation since 2016. We positively contributed to the complete victory in ﬁghting against poverty through a series ’ ” exceeded RMB 120 million. By leveraging their own business strength, all business units of JD.com actively pursue the ’ company s philosophy for public beneﬁt and conduct diversiﬁed activities to promote the well-being of society. The Focus Areas of Philanthropic Eﬀorts We actively fulﬁll our social responsibilities in safeguarding people ’ s lives, rural revitalization, education support, healthcare, and emergency relief by consistently conducting diversiﬁed philanthropic programs. Survival Safeguard By the end of 2021, the total number of JD.com ’ s full-time employees reached 380,000. We secure the employment and livelihood of our employees and their families by providing essential welfare safeguards and rolling out a series of favorable welfare policies that are superior to the industry s average practices. ’ substantially. We take full advantage of our smart and connected supply chain and are committed to interconnecting the rural industrial chains. JD.com well demonstrates its ﬁve core competencies in supply chain, logistics, technology, ﬁnance, and service in supporting the nation ’ s rural revitalization strategy. Supply chain empowerment New infrastructure construction Supply chain Logistics Five core competencies Supporting industrial belts Ecosystem Service Finance Financial support Rural grassroots health care Technology Smart and connected village Empowering Rural Industrial Chain with JD’s Supply Chain and Building the “Rural Revitalization Expressway” with Five Core Competencies The promotion of the rural industrial chain is essential for accelerating rural revitalization. As of the end of December 2021, JD.com had cooperated with more than 1,000 agricultural specialties production zones and agricultural industry belts in China. Meanwhile, JD.com directly connected to more than 500 large-scale, high-quality vegetable planting bases and jointly built more than 70 modernized, standardized, and smart farms. By establishing more than 700 online pavilions for local specialties, JD.com helped farmers in remote or underdeveloped areas to expand market channels for their agricultural and handicraft products. At the same time, JD.com provided job opportunities for a signiﬁcant number of migrant workers who returned to their hometowns. Meanwhile, JD.com guaranteed solid revenue to more than 200,000 rural families through stable income, social insurance, housing fund, etc. JD.com guaranteed solid revenue to more than 200,000 rural families 2021 JD.com Environmental, Social and Governance ReportPromoting Inclusive Development of the Society 77 78 Supporting the Supply Chain Construction in Central and Western China Providing Insurance for Supply Chain of Agricultural Products “ ” We have signiﬁcantly improved the eﬀectiveness of our logistics In 2021, led by JD.com, the AllianzJD Insurance Sichuan branch delivery in remote areas by building Asia No.1 Logistics developed a demonstrating service model of rural revitalization Industrial Park in Urumqi, Yinchuan, Deyang, and other central in Xiuwen, Guizhou province. This project planned to provide and western regions of China. agriculture-related insurance services for famous local kiwifruit, covering product liability insurance and price insurance. Furthermore, the project beneﬁted the supply chain facilities such as production, warehouse, and logistics and helped rural ’ s expertise in Empowering All-Chain of Rural Revitalization by Digitalizing Agriculture and Constructing New Infrastructure in Rural Areas By persistently strengthening our supply chain advantages in the countryside and sharing our solid capabilities in infrastructure construction and technology innovation, we set up the all-chain of rural revitalization that empowers rural industrial development. In 2021, JD Fresh collaborated with the China Geographical Indications Industry Associations(CGIIA) of 21 provinces, municipalities and autonomous regions in China, which advanced the sales and brand exposure of local landmark products such as Jiangsu Suqian Diwang Crabs, Fujian Ningde Big Yellow Crocker, Guizhou Xiuwen Kiwifruit, etc., and consequently helped agricultural specialty products to achieve scalable, high-quality, and brand-driven development. JD Technology also fully boosts the sustainable development of rural revitalization. JD Technology assists multiple agricultural product brands such as Baishui Apples, Tongchuan Chinese Herbal Medicine, and Sichuan “ Meishan Citrus in achieving an industrial upgrade. By initiating the Village Empowerment Action through our 9” Jingxi Farm , we led over ten thousand farmers in eight provinces to reduce costs and increase income. This 10 uplifted the average yield per mu by 10-20% and resulted in cost-saving of up to RMB 50-100 per mu every year (a mu=0.0667 hectares). ’ JD s private label brand HuiXun cooperates with Dida Agriculture in Shanhe Town of the Wuchang City in Heilongjiang province to develop a specialized product of pearl rice that is only ground after the order is placed. The cooperation between HuiXun and Dida Agriculture closely connects the very ﬁrst and the very last kilometer in the logistics of agricultural products, which signiﬁcantly shortens the product circulation process. JD.com s e-commerce platform stimulates product sales for local enterprises and simultaneously helps the local ’ communities to generate more income. In the meantime, the new business model with a partnership between the e-commerce platform and brands also provides a demonstrating model that attracts local youths to start businesses back to their hometowns. In 2021, through cooperation with HuiXun, the purchase orders received by Dida Agriculture increased by 700%, while the logistics cost decreased by about 40%. JD Health launched an online healthcare service, “ Zhen Jing Cai, ” aiming to increase the accessibility of the medical supply chain in the rural areas, and promote the training of rural doctors. Zhen Jing Cai improved the digital intelligence capability of medical care institutions in rural areas and helped rural patients get diagnosed and receive timely medical treatment. 9 “ Village Empowerment Action ” is one of the speciﬁc programs in JD “ ’ s Benfu ” Plan. 10 Jingxi Farm is a rural revitalization solution launched by JD ’ s online consumption mall Jingxi. revitalization in Xiuwen county by exerting JD insurance. Rural Education We are committed to promoting education in poverty-stricken areas in China. Based on our public welfare platform of “ ” Collecting Objectives with Love, we have taken on a series of corporate philanthropy programs by incorporating our smart and connected supply chain capability. Children Books Donation Campaign Since 2018, JD.com has jointly launched a Children Books ’ ’ Donation Campaign with Stars Youth Development Center (SYDC). Together with the People s Daily App, we further promoted this Donation Campaign in 2021. This campaign aims to help rural schools that lack book resources update their library collections, enrich the reading world of children in remote rural areas and improve local children s reading quality. In this event, JD s couriers pick up the books from donors for free and deliver ’ them to the designated schools under the guidance of the SYDC. The Children Books Donation Campaign not only responds to the advocacy of World Book Day, but also promotes book “ recycling and contributes to environmental protection. During the 2021 event, 67,608 valid children s books were donated to ” ’ 119 project sites in 17 provinces, municipalities and autonomous regions through the JD Giving Platform. During the 2021 event, 67,608 valid children ’ s books were donated through the JD Giving Platform 2021 JD.com Environmental, Social and Governance ReportPromoting Inclusive Development of the Society ’ ’ 79 80 Rural Children’s Dreams-Come-True Plan SOS Children’s Village in China Emergency Support In 2021, JD.com joined hands with the China Social Assistance In 2021, we worked with several partnered brands to sponsor “ Foundation to launch the ” Dreams-Come-True public a gamiﬁcation public welfare campaign, JD Fun Festival. “ ” Over the years, JD.com has actively participated in disaster mile distribution. Our eﬃcient digital command and dispatch relief and epidemic prevention tasks by leveraging its unique system provides high eﬃciency supply services for emergency welfare activity, aiming to improve the living conditions for We donated various materials and services worth about RMB strength in a smart and connected supply chain. As an the children in Dayi Hope Primary School of Gaixin Village in 967,000, including children s healthcare products, health enterprise with the capability to reserve living necessities materials allocation. Our self-operated business can help ” stabilizer stabilize prices in special periods, and it is the “ of Pu er City of Yunnan province, Huanggang Primary School consultations, household appliances, amusement park tickets, for city-level supplies backed by a nationwide supply chain emergency support systems in various places. In 2021, JD.com ’ of Shuangjiang Township in Liping County, Qiandongnan etc. We provided livelihood support for the children in SOS network, we can quickly respond to situations from regular fully leveraged its experiences in anti-epidemic and disaster Prefecture of Guizhou province, and Yuhua Hope Primary Children s Villages from remote regions, brought hope to times to emergencies. We have a stable and powerful supply relief and spared no eﬀort to ensure an adequate supply of School of Datai Village in Fuping County, Baoding City of hundreds of children who have lost their families and enabled chain which can provide the whole process of supply chain relief materials in disaster-stricken and epidemic-aﬀected Hebei province. We helped the children to realize their dreams them to feel warmth and care from the society. services from upstream production and procurement to last- areas. according to the wish list collected from all the school “ ” children, aiming to convey social values. Assist Regular Health Management When Epidemic Prevention Becomes Routine Medical Health By organizing thematic public welfare activities on international health days, JD.com advocates a healthy lifestyle and calls on the whole society to care for patients with various major diseases. JD Health’s Rare Diseases Care Program On the eve of the Rare Diseases Day 2021, JD Health launched “ the Rare Diseases Care Program ” ” “ and established the JD Health Rare Diseases Care Fund together with the Beijing Illness Challenge Foundation (ICF). By connecting forces from all walks of life, we build a one-stop solution platform “ integrating ” medical consultation, medication, insurance, and public welfare, and provide comprehensive medicines and medical services for rare disease populations to help them alleviate three major barriers namely, the diﬃculty in accessing high-quality diagnosis and treatment, necessary medicines and ﬁnancial support. In 2021, more than 24,000 patients with rare diseases purchased relevant medicines and obtained corresponding medication services from JD Health, and the Fund has aided 69 patients with rare diseases. “Oxygenate Life” Project for Pneumoconiosis Patients On World Breath Day in June 2021, the JD Foundation and nonproﬁt organizations such as DaAiQingChen, launched public welfare science popularization activities, drawing ’ the public s attention to respiratory health and care for pneumoconiosis patients. In addition to popular science activities, JD Foundation launched the second phase of the “ ” Oxygenate Life project, which sourced 15 oxygen generators JD Health Free Online Consultation Services Intelligent Government Service Hotline COVID-19 Vaccination Information Sharing Platform JD Health also oﬀered free online consultation services in these areas, so as to eﬀectively meet people ’ s urgent need for healthcare support. JD.com introduced a new generation of intelligent government service hotline, which supported the local governments with epidemic screening work during the outbreak of epidemic in Dongguan, Guangdong Province in December 2021, and completed the joint screening work in only 4 hours, serving millions of citizens in the city. And the feedback information was collected, analyzed, and assessed to generate detailed reports, which were used by city governors and relevant epidemic prevention and control departments as a piece of important information to carry out precise anti-epidemic measures. JD Health upgraded its online reservation and onsite testing service of nucleic acid testing and launched the COVID-19 Vaccination Information Sharing Platform to help residents get timely “ ” vaccination information in their cities. and 200,000 masks to donate to pneumoconiosis patients. Joined Responsibility and Eﬀorts on AIDS Prevention Collaborating with the Chinese Foundation for the Prevention of STD and AIDS, JD Health launched a special event on World AIDS Day, introducing a one-stop anti-AIDS solution ranging from relevant knowledge sharing on HIV/AIDS prevention, to treatment, providing reliable healthcare services to all the people regardless of their conditions. Green Online Channel for COVID-19 Insurance Claim AllianzJD opened the original-bill-free mode for minor claim cases during the epidemic period, and the green online claim channel is opened for all COVID-19 medical cases, which is of great signiﬁcance under the global outbreak of COVID-19. AllianzJD also launched a series of innovative products and services for companies with a global business presence and provided relevant support for global transshipment and medical services for the COVID-19 epidemic cases. There were 1,197 COVID-19 related claims throughout 2021, with a total indemnity of RMB 11.34 million, including many overseas claims cases, and more than 95% of claims were settled through the green online channel. “ The 69 JD Health Rare Diseases Care Fund ” has aided patients with rare diseases in 2021 15 oxygen generators masks to donate to JD Foundation sourced 200,000 and pneumoconiosis patients 2021 JD.com Environmental, Social and Governance ReportPromoting Inclusive Development of the Society 81 82 Materials Supply and Transportation Support Animal Protection JD.com highly values the timely supply of emergency materials in case of disasters, epidemics, and other major accidents. JD has made a commitment that the managers of JD ’ s warehouses near the site of emergency are endowed with the authority to pet food supply of stray animal rescue stations. We actively cooperate with animal protection foundations as well as rescue stations and undertake philanthropic actions to ensure the donate relief items needed by disaster areas from the warehouses without getting approval from upper management. After the outbreak of ﬂood disasters as well as the regional epidemics, JD.com kicked oﬀ the emergency mechanism immediately to exert the capacity of logistics infrastructure and ensure that living necessities and relief materials are delivered to the aﬀected areas in a timely and eﬃcient manner. During the ﬂood season in Henan province, JD.com rapidly raised and ’ transported several disaster relief materials to the disaster-stricken areas. On the anti-epidemic front line, JD.com s autonomous delivery vehicles undertook the heavy responsibility of ensuring the supply of livelihood materials in the epidemic control areas. And JD Health launched a 24-hour free online consultation service, provided emergency supplies of disinfection and epidemic prevention materials, and set up an oﬄine medical rescue team to carry out onsite diagnosis and treatment. JD Super, JD.com ’ s omnichannel supermarket actively conducted the stock-taking with various brand owners and suppliers. The physical stores of our oﬄine brand, such as SEVEN FRESH, replenished the livelihood supplies to ensure an adequate supply with stable prices in cities under the medium and high COVID-19 risks for at least 20 days. Supported Hong Kong for Epidemic Relief with Various Measures JD announced a donation of RMB 100 million worth of anti-epidemic relief “ JD Pet worked with nonproﬁt organizations and various pet-caring brands to launch the Warm Winter Care Plan ” during the 2021 JD.com Chinese New Year Grand Promotion. The Plan donated 10,000 kilograms of pet food for stray animals. JD launched the “ Order for Philanthropy Project ” in 2021. Consumers can convert every online purchasing order on JD.com into the caring energy to donate. JD and pet product brands will match the caring energy to donate the pet food and vaccination services to stray animal rescue stations. The project provided concrete help to the stray pets, helped reduce the homeless animals, and mitigated the related social problems as well. ’ s Open Platform according to the JD.com has formulated the Prohibited Goods and Information Management Standard for JD.com Law of the PRC on Wildlife Protection, the Regulations of the PRC on the Implementation of Terrestrial Wildlife Protection, the Fisheries Law of the PRC, as well as other relevant laws and regulations. The Standard prohibits the sale of animal killing tools, equipment, and accessories that seriously endanger animal safety, including electric ﬁsh traps, bird nets, hunting clips, stumble covers, etc. JD also sorts out the common illegal hunting and ﬁshing tools by establishing a special team. The special team also adopts an interception strategy empowered by digital technologies, as well as takes manual inspections ensuring to interdict illegal commodities before, during, and after the illicit products occur on our platform. We delist all illegal items and eﬀectively cut oﬀ the selling channels for illegal hunting and ﬁshing tools on our platform, which help prevent the wildlife and ﬁshery resource from being damaged and make our own contribution to the ecological environment protection. supplies to healthcare professionals in Hong Kong on February 18, 2022. JD also maintained close communication with the social organization Hong Kong Community Anti-Coronavirus Link, to provide support whenever ” “ necessary in the ﬁght against the pandemic resurgence in Hong Kong. Thanks to the rapid response mechanism of the strong supply chain system, the ﬁrst batch of JD s donations of 6,000 cartons of epidemic ’ prevention supplies successively arrived in Hong Kong on February 23, 2022. Furthermore, to meet Hong Kong residents surging demand for ’ anti-epidemic and life necessities, JD mobilized inventories and set up a special portal on its App to oﬀer online shopping convenience for Hong Kong customers. In addition, JD Health launched a free online consultation service for users in Hong Kong to have easy access to healthcare advice from telemedicine doctors and multimedia guidance on coronavirus infection prevention. 2021 JD.com Environmental, Social and Governance ReportPromoting Inclusive Development of the Society 83 84 Thematic Report on Climate-related Financial Information Disclosures The crisis of climate change is threatening the safety of business assets and operations, while proactively tackling climate change can bring new opportunities for sustainable business growth. Meanwhile, business activities are also one of the principal causes of global warming. Enterprises are playing an increasingly important role in global climate and environmental governance. JD.com is committed to building a more productive and sustainable world. Relying on its business impact alongside the supply chain, JD.com is taking a leading role in engaging more partners in climate actions. In 2021, JD.com made a carbon reduction declaration to the whole value chain it operates in, established a green ﬁnancial framework, and continued to expand the inﬂuence of the Green Stream Initiative. JD.com is accelerating its low-carbon development through technology, promoting the green transition of the industry, and leading the society towards greener consumption. ’ The recommended framework released by Task Force on Climate-related Financial Disclosures (TCFD) in 2021 is the world s most inﬂuential and widely applied climate information disclosure standard. Referring to the framework suggested by TCFD, JD.com disclosed its climate-related governance structure, the strategic process of risks and opportunities identiﬁcation, risk management, and goals. Governance The Board’s Oversight of Climate-Related Risks and Opportunities ’ s climate-related risks and opportunities. The Board of Directors of JD.com has continuously promoted the governance of the company The board of directors follows the company s ESG governance system structure and cooperates with the Strategy Execution Committee ’ (SEC) to jointly manage, supervise, and regularly review the implementation and progress of the company s climate governance. ’ Management’s Role in Assessing and Managing Risks and Opportunities Socio-economic environment13 The SEC conducts daily supervision and reporting with respect to climate-related risks and opportunities governance. At the same time, the ESG Task Force of JD.com is responsible for coordinating the daily management of climate-related risks and opportunities and collaborating with the relevant responsible persons from business groups and units to implement and promote related work. Strategy In Diﬀerent Climate Scenarios11, the Forecast of Macro-Environmental Situation Confronted by JD.com To better understand the potential impact of climate change on JD ’ s business, JD.com conducted a climate scenario analysis for JD ’ s external business environment in 2025 and 2030, including ecological, economic, social, etc., based on the shared socio-economic pathway (SSP) assumption adopted by the Intergovernmental Panel on Climate Change (IPCC). 12 11 SSP1 and SSP3, i.e., emission scenarios under diﬀerent climate policy interventions. Table 1: Forecast of Macro-Environmental Situation that JD.com May Face in Diﬀerent Climate Scenarios Natural ecology12 ● ● ● ● ● ● ● ● ● ● ● SSP1 (low emission scenario with strict climate change policy intervention) SSP3 (high emission scenario without climate change policy intervention) Mean temperature: 1.6℃ higher in 2040 than in the pre- industrial period (a rise of 2.0℃ as in 2100). Sea level rise: 0.1m higher in 2040 than the current level (a rise of 0.4m as in 2100). Extreme climates: the frequency and intensity increase to some extent. Precipitation: When the temperature rises by 1.5-2.0℃ , many parts of the world will encounter more severe ● ● ● ● Mean temperature: 1.6℃ higher in 2040 than in the pre-industrial period (a rise of 3.9℃ as in 2100). Sea level rise: 0.1m higher in 2040 than the current level (a rise of 0.6m as in 2100). Extreme climates: the frequency and intensity increase signiﬁcantly. Precipitation: When the temperature rises by 2.0- agricultural and ecological drought, while the precipitation 4.0℃ , most parts of the world will undergo more intensity in certain localities will increase by 10.5%-14%. serious agricultural and ecological drought, Global climate policy: major countries and regions in the world have announced the carbon neutrality paths (including China ’ s carbon peak by 2030 and neutrality goals by 2060) and strictly implemented the planned targets. Global business models: from fossil fuel-dependent economy to renewable energy-driven economy. Greenhouse gas emissions in China: the carbon dioxide emission per unit of GDP will decrease by 18% in 2025 as compared with that in 2020, and by more than 65% in 2030 as compared with that in 2005. Carbon price in China: in 2025 and 2030, the carbon price is expected to reach RMB 63-87 and RMB 77-139 per ton respectively. Energy consumption structure in China: the proportion of non-fossil fuels in primary energy consumption will reach 20% in 2025 and 25% in 2030. New energy vehicles in China: by 2025, the sales of new energy vehicles will reach about 20% of the total sales of new cars; and by 2030, the proportion of vehicles powered by new energy and clean energy will reach about 40%. Consumption trend in China: by 2025, the green consumption will be widely popularized, and the market share of green low-carbon products will be signiﬁcantly while the precipitation intensity in certain localities will increase by 14.0%-30.2%. ● ● ● ● ● ● ● Global climate policy: some countries and regions still lack carbon neutrality goals and have no detailed short-term climate actions and long-term goals. Global business models: proﬁt-driven business model, which fails to properly consider the environmental and social impacts, without obvious ﬂuctuation in renewable energy portfolio. Greenhouse gas emissions in China: as in 2030, greenhouse gas emissions will increase by 38% compared with the present level. Carbon price in China: as in 2025 and 2030, the carbon price keeps the same as that of 2021, which is RMB 49-56 per ton. Energy consumption structure in China: the proportion of non-fossil fuels in primary energy consumption maintains as that in 2020, about 16%. New energy vehicles in China: the proportion of new energy vehicle sales to total new vehicle sales maintains as that in 2021, which is 11.25%. Consumption trend in China: the concept of increased; by 2030, green consumption will become the green consumption is still not dominant, and the conscious choice of the public, and green and low-carbon market for green low-carbon products is limited. products will be dominant in the market. 13 Sources: the sixth assessment report of the Intergovernmental Panel on Climate Change (IPCC) Working Group (WGI) and the CMIP6 climate model. ’ Sources: Action Plan for the Nation s Carbon Peak before 2030 issued by the State Council in 2021, Guidance on Climate Disclosures issued by HKEX in 2021, national ’ carbon market transactions as of the end of 2021 issued by the Ministry of Ecology and Environment, China ’ 2021, China ’ s Daily, the Implementation Plan for Promoting Council at the end of 2020, the proportion of new energy vehicles in China as of the end of 2021 issued by People ’ Green Consumption issued by the National Development and Reform Commission and other departments in 2022, and the Carbon Neutralization Path of China s Energy Industry issued by the International Energy Agency (IEA) in 2021. s carbon price survey in 2021 issued by China Carbon Forum, the New Energy Vehicle Industry Development Plan (2021-2035) issued by the State s carbon market price forecast issued by Reﬁnitiv in 2021 JD.com Environmental, Social and Governance ReportThematic Report on Climate-related Financial Information Disclosures 85 86 Potential Risks and Opportunities for JD.com in Diﬀerent Climate Scenarios By collecting the information provided by various departments and combining it with literature-based studies on climate, macro-environment, industrial policies, etc., we analyze the potential impacts of high emission scenarios and low emission scenarios on our operation, supply chain, retail business, technological innovation, and investment and ﬁnancing. We then identify the potential physical and transition risks in diﬀerent climate scenarios. We deﬁne risks and opportunities as short-term (S), medium-term (M) and long-term (L) inﬂuence periods according to whether the risks and opportunities have aﬀected the business and their impact cycles 14 . High emission scenario (SSP3), the potential impact of physical risks on JD.com business, risk identiﬁcation and impact cycle. Physical risk classiﬁcation Business impact brought by physical risks Heatwave, Sea Level Rise, Flood, Frequent Extreme Weather, and Biodiversity Loss. According to the 2021-2022 global risk ranking of the World Economic Forum Global Risk Perception Survey (GRPS) in the next decade, climate-related risks such as climate action failures, extreme weather, and biodiversity loss are listed as the three most severe global risks. At the same time, the research also suggests the potential consequences caused by these climate-related physical risks, especially the impact on the sustainable development of enterprises. These impacts include Natural Resource Crises, Human Health Crises, Ecological Environment Damage, and Infrastructure Failure. Based on these impact dimensions, we summarize and describe the potential risks of JD.com. Table 2: Potential impact of physical risks on JD.com business in high emission scenario (SSP3), risk identiﬁcation and impact cycle Strategic dimension Impact dimension Risk description Physical risk classiﬁcation Impact Cycle ● The frequency of extreme natural disasters such as extreme precipitation, ﬂoods, typhoons, thunderstorms and extreme high/ low temperature weather events caused by climate change will increase, which damages the buildings and operational stability such as oﬃce buildings, smart industrial parks and data centers, and increases the cost for maintaining infrastructure such as warehouses and data centers. According to relevant statistic data, from 2000 to 2019, the frequency of ﬂood disasters in China increased signiﬁcantly as compared with the period from 1980 to Operation Infrastructure Failure 1999. In 2021, Henan and Shanxi Province suﬀered from extreme precipitation events , which caused serious disasters and had an 15 impact on warehousing and operation sites. ● Future sea level rise may force the infrastructure and business in coastal areas to relocate to inland areas, which will increase operating costs. Operation Human Health Crises; Ecological Environment Damage ● ● ● ● The increased risk of infectious diseases 16 and air pollutants caused by climate change will aﬀect the health and safety of employees, especially front-line employees. Increased heat weather events will reduce the working eﬃciency of employees of JD.com, endanger health and safety, and increase high temperature subsidies and medical expenses. With the increasing frequency of drought disasters, the consequent wildﬁres will cause heat damage. The smoke and dust will harm public health. For example, compared with the period 2001-2005, the annual average wildﬁre exposure in China for the period 2016- 17 2020 increases by 24.5% 18 . ’ s suppliers, customers or business partners are threatened If JD.com ’ in respect to health and safety, JD com s operation may be interrupted and damaged. Floods, typhoons, thunderstorms, higher frequency of extremely high/ low temperature weather caused by climate change will increase the possibility of damage to logistics infrastructure (including business-related facilities, regional order fulﬁlment centers, front-end distribution centers, other newly-established warehouses, distribution Infrastructure Failure stations or self-pickup outlets, and road facilities), which will lead to the reduction of operational eﬃciency or even failure of regional order fulﬁlment centers, and subsequently a negative impact on Supply chain management Ecological Environment Damage; Nature Resource Crises commodity transportation, delivery and sales of goods. For example, severe rainstorm and ﬂood will damage the logistics planning of route, storage and transportation network, and the battery components of transport vehicles may be damaged due to heatwave or extreme cold weather, which will aﬀect the express delivery eﬃciency and the enterprise income. The ﬂood, typhoon, thunderstorm, and high frequency of extreme high/low temperature weather caused by climate change will aﬀect the supply and transportation of raw materials, which will lead to the higher price of raw materials or the challenge to commodity supply and inventory. Seasonal commodities such as rain gear and quilts will adversely aﬀect the proﬁtability and business performance of ’ s brands and partner businesses. For example, the oﬄine fresh JD.com stores operated by JD.com s 7FRESH rely on continuity and timeliness ’ ’ of various suppliers and sellers in providing and distributing JD.com s of Extreme storage of perishable products. However, if major suppliers or sellers Weather encounter extreme weather events, and the production and quality of agricultural products decline, JD.com s product inventory may be ’ ● ● ● ● ● ● ● ● Biodiversity Loss Heatwave M S L Heatwave Flood Frequent Occurrence of Extreme Weather M L Heatwave Flood Frequent Occurrence S M ● ● ● ● Heatwave Flood Sea Level Rise Frequent Occurrence of Extreme Weather M L seriously damaged, thus aﬀecting the whole supply chain. Consumers/ users Ecological Environment Damage Climate change leads to the destruction of the ecological environment and brings challenges to food chain operation as well as food safety and quality, consequently reducing consumer satisfaction and increasing ’ potential health risks. For JD.com, the cost for restoring consumers ● Biodiversity S M Loss satisfaction and protecting their rights and interests will also increase accordingly. 14 As deﬁned in this topic, short-term is designated for less than 2 years, medium-term for 2-5 years, and long-term for more than 5 years. 15 16 Source: 2021 Lancet Countdown Annual Report on Population Health and Climate Change, China Edition released by the Lancet Countdown Regional Centre in Asia. ” Source: �May Coronavirus pneumonia exist for a long time?� released by UNEP in 2020 17 Average number of days per year that people are exposed to wildﬁres. 18 Source: 2021 Lancet Countdown Annual Report on Population Health and Climate Change, China Edition released by the Lancet Countdown Asia Center. 2021 JD.com Environmental, Social and Governance ReportThematic Report on Climate-related Financial Information Disclosures 87 88 Low emission scenario (SSP1), potential impact of transition risks on JD.com business, risk identiﬁcation, and impact cycle. In respect to the risk of business transformation caused by JD ’ s climate actions, the tightening of macro policies in the low emission scenario and the holistic low-carbon transformation tendency may bring enterprises more potential policy restrictions, which will aﬀect JD.com ’ s operation and income. Supply chain management Based on the sources of transition risk caused by climate change, the risks can be deﬁned as: Policy and Legal, Technology, Reputation, and Market. Table 3: Climate-Related Transition Risks and Strategic Dimension, Risk Description, Classiﬁcation and Impact Cycle of JD.com in Low Emission Scenario (SSP1) With the tightening of the national policy on dual control of energy consumption intensity and total amount, the power consumption of high-energy-consuming enterprises is limited, and the electricity price is increased, and the excessive response to energy transition will impact the energy market. The supply of high-energy-consuming industrial products will shrink, and enterprises in key emission industries will face the pressure of capacity contraction, which may lead to the price increase of raw materials and the adjustment of industrial structure. Some suppliers of JD.com will also be potentially aﬀected, and directly manifested in poor supply and rise of purchase prices. ● ● Policy and Legal Technology S M The measures taken to cope with climate change, such as the Stream Initiative, including the use of new energy, research and ” “ Green development and purchase of carbon reduction technologies and low- ’ s operating costs in the carbon infrastructure, will increase the company short term. Pressure from the supply side Pressure from the transition cost Risk description Classiﬁcation Impact Cycle Strategic dimension Low-carbon development trend of the society Many countries and regions may implement stricter climate-related policies (such as “ implementing carbon price mechanism and shifting to renewable energy); Opinions of the Central Committee of the CPC and the State Council on Carbon Dioxide Peaking and Carbon Neutrality in Full and Faithful Implementation of the New Development ” and ’ “ s Carbon Peak Before 2030 Action Plan for the Nation ” have clearly Philosophy pointed out the safeguard schemes, such as scientiﬁc and technological support, energy security, ﬁnancial and monetary pricing policies, etc., for implementing the carbon neutrality and emission peaking goals in key domains, industries and regions, as well as the transition trend of regionalization and industrialization. Supply chain management Laws and regulations related to green supply chain are increasingly strict. China is intensively promulgating policies and regulations related to green transportation, plastic pollution control and green industrial park development during the 14th Five-Year Plan period. If we fail in strengthening compliance management and promoting the transformation in time, the logistics business of JD.com will face increasing regulatory pressure. ● “ Transportation: The 14th Five-Year Plan for Green Transportation ” clearly puts forward the green transition strategy of logistics transportation and speciﬁes more quantitative targets in reducing pollution and carbon emission, energy consumption structure of logistics vehicles and transportation structure, which has become the mandatory task that JD.com must complete. ● ● Packaging: The ” “ 14th Five-Year Plan of Action for Plastic Pollution Control and related packaging policies of the postal service and logistic industry put forward clear requirements and quantitative goals for the whole chain governance of plastic packaging, especially the reduction, standardization, circulation and easy recycling of e-commerce and delivery packages, and specify a clear timetable for packaging transformation and optimized management in JD.com. Industrial parks: “ The Implementation Plan for Special Action of ” Green Development of National High-tech Zones points out that it is necessary to cooperate with industrial parks in urban energy green transition and maximize the use of clean energy and recycling-targeted transformation of parks to build a low-carbon city and develop a low- carbon economy. ● ● Policy and Legal Technology S M Public attitudes and consumption preferences have shifted, with more attention paid to the low-carbon attributes of commodities; and the younger generation attaches importance to the social value of enterprises when looking for jobs. Shifts in market preferences (such as consumer preferences, supply and demand) may lead to an increase ’ ● Policy and Legal M S L Social and cultural transformation in consumers demand for environmentally friendly products, which in turn will lead to potential cost increase, including but not limited to the cost caused by changes in manufacturing technique, processes and facilities, or the cost increase in raw materials, etc. If we lag behind our peers in grasping the direction of market changes, we may lose revenue and market share. For example, the Notice of the General Oﬃce of the Ministry of Commerce on Promoting the Green Development of E-commerce Enterprises ” encourages “ e-commerce platforms to actively promote green consumption and expand sales of energy-saving, environment-friendly and green products. Driven by policies, the superposition eﬀect of the “ dual revolution ” of information technology and energy technology will be further revealed, and the emission reduction eﬀect of new infrastructure on the intelligent upgrading and transformation of industries and the synergy of green elements will be fully exerted. JD.com shall develop its industry insight and enlarge the investment in research and development of energy-saving and emission reduction technology solutions to tackle the needs of various industries in some key areas of new infrastructure, such as data center eﬃciency, artiﬁcial intelligence, industrial internet, etc. Without implementing that, JD will lose its ﬁrst-mover advantage in the trend of green transformation of the society, which may further aﬀect the future revenue. It is also necessary to evaluate the corresponding risks in the research and development and application of technologies. Technological progress and application ● ● ● ● ● ● Market Reputation Policy and Legal M S L Technology Policy and Legal Reputation M L Climate investment and ﬁnancing Research shows that there is still a huge funding gap to accomplish the green transformation. Policies encourage investment ﬂowing to green enterprises and establish a complete system for green credit, supervision, and rating management. By the end of 2021, the central bank had successively launched tools for supporting carbon emission reduction and reﬁnancing for clean and eﬃcient utilization of coal to provide preferential ● interest rate support for eligible projects. At the same time, ESG investment, which takes enterprise environmental risks, especially climate risks as an important dimension of consideration, is developing rapidly. If JD.com fails to timely and quantitatively assess the climate-related risks and comprehensively evaluate the systematic impact of low- carbon transformation on business, it may lose some potential investment and ﬁnancing opportunities. Policy and Legal M L 2021 JD.com Environmental, Social and Governance ReportThematic Report on Climate-related Financial Information Disclosures 89 90 Transition Opportunities in Response to Climate Change JD.com insists that green development is the main driver for the high-quality development. We aim to seize the opportunity of a new wave of the scientiﬁc and technological revolution and industrial market transformation in the process of transforming to a low-carbon economy and provide more eﬃcient and innovative solutions to tackle global climate risks through our technological innovation. Table 4: Strategic Direction, Transition Accomplishment, Classiﬁcation and Impact Cycle Under the Background of Low-Carbon Economic Transformation of JD.com Strategic direction Opportunity and strategy Transition accomplishment Classiﬁcation Impact cycle Develop photovoltaic industrial parks In 2021, JD.com has completed the construction of the ﬁrst batch of 12 “ ” photovoltaic power generation systems for Asia No.1 smart industrial parks, and another 1,000 megawatts of photovoltaic power generation capacity is expected to be built in three years by JD.com, providing green energy for 85% of JD.com smart industrial parks. Photovoltaic power generation can provide abundant, clean, and safe energy sources. Under the requirement of carbon neutrality, the market space of photovoltaic industry will gradually expand. JD.com has formulated the Green Finance Framework, which systematically demonstrates the principles and processes of green ﬁnance in funding ● Energy source M Supply chain Promote green ﬁnance sustainable development projects. At the end of 2021, a ﬁve-year $2 billion green ● syndicated loan was signed. Green ﬁnancing can facilitate the projects that have Markets M positive environmental impacts and promote sustainable practices, so as to support the Group s green and sustainable development strategy. ’ Monitor the climate risks by using big data Green operation Build infrastructure with climate resilience JD.com will further explore new data management methods to provide early warning and decision-making support for the potential harm to employees when working in severe weather and the ﬂuctuation of business volume caused by the concentration of social demands in extreme weather. On the other hand, extreme weather may increase employees ’ demand for ● Resilience L remote work, and we will improve the performance of the data system to meet this demand. Through data-enabled and system-supported measures, the management risks caused by climate change can be reduced, and the internal management eﬃciency of the organization can be improved. ● When constructing JD.com ’ s new headquarters buildings NO. 2 and NO. 3 and its Southwest China headquarters oﬃce buildings, the designers fully considered the possible inﬂuence of extreme weather on the buildings. The concept of sponge city design is adopted to maximize the natural inﬁltration of rainwater, replenish groundwater resources, where rainwater storage tanks are set up to reduce the drainage pressure of municipal rainwater system. ● In JD.com ’ s Smart Industrial Parks, emergency response plans are formulated for all kinds of extreme weather, including but not limited to wind-proof appliance for typhoon and windy weather, heavy rain ﬂood control, snow sweeping and anti-freezing for blizzard weather, lightning shielding and ● ● detection for lightning weather, etc. Plans for dealing with extreme weather have been made for JD.com ’ s Data Center. It is capable of weathering typhoons, lightning, rainstorms, and high temperature respectively. Infrastructure construction with more climate resilience can not only eﬀectively resist climate disasters, but also make full use of natural resources, reduce water and electricity consumption of buildings and greenhouse gas emissions. At the same time, it helps reduce costs and meet the requirements of environmental supervision for emissions. ● Resilience S M Consumer/ user Develop new energy vehicles and optimize transportation routes Promote green reusable logistics packaging Improve the resilience of supply chain Introduce green products and services Provide energy- saving and carbon- reducing services for enterprises through digital intelligence ● ● ● ● As of April 2021, JD.com has deployed new energy vehicles in more than 50 cities in seven regions of the country and made extensive use of clean energy charging infrastructure to reduce carbon dioxide emissions by at least 400,000 tons per year. By 2030, JD.com will replace and upgrade 100% logistics vehicles with new energy logistics vehicles. JD.com uses big data to allow real-time route optimization, and warehouse and transportation network planning, to reduce the number of vehicles en route and improve the full-load rate of returning vehicles. Some freight transportation modes are changed from road transportation to railway transportation, and the green transportation pattern is fully implemented to optimize the logistics transportation eﬃciency. For logistics packaging, we are committed to promoting 100% renewable and replaceable packaging, replacing traditional petroleum-based plastic bags with packages made of green degradable materials, aiming to engage 80% of upstream partner brands by 2030 to conduct eco-friendly packaging ● Resource eﬃciency M L research and development. By continuously promoting the recycling of packaging, under the Stream Initiative, the reusable packages have been used for 200 million ” “ Green ● Resource eﬃciency M L times, and through the linkage of more than 200,000 merchants, this action saves 10 billion delivery cartons every year. It has driven hundreds of millions of consumers to participate in this initiative, eﬀectively reduced the cost of packaging materials, and raised public awareness of recycling. For commodities with sales vulnerable to extreme weather and climate change, such as seasonal commodities like umbrellas, rain gear, quilts, etc., it is necessary to timely adjust inventory according to weather changes to avoid ● out-of-stock or dull of sale; and for primary products of agriculture, forestry, for ’ instance, an annual purchasing plan shall be made, ensuring at least one year s Resilience S M supply, and increasing the cold storage space. JD.com oﬀers massive types of “ green commodities ” to customers. Through intelligent recommendations to guide green consumption, the energy-saving appliances sold every year can reduce carbon emissions by nearly 2 million tons. As one of the ﬁrst batch of national pilot companies, JD.com has fully implemented the practice of electronic invoicing. According to statistics, in 2021, more than 2.8 billion electronic invoices were issued by JD.com, thus saving about 16,000 tons of paper, equivalent to less felling of over 310,000 adult trees and reducing carbon emissions by 15,000 tons. The supply of green products and services can help shape the concept of green sustainable ’ consumption, while strengthening JD s branding and market value in supplying green products. The demand for professional consulting regarding the nation ’ s carbon peak and neutrality goals from the government and enterprises, as well as establishing a digitalized carbon neutrality platform will gradually expand in the future. ● Products/ services S JD Industry takes the advantages of technologies such as internet of things, big data and artiﬁcial intelligence to develop digital intelligent dual-carbon brains for the government and industrial parks respectively. Combining the ” “ competences in industrial supply chain and industrial internet technology base ● Products/ and integrating the databases encompassing the energy, carbon emissions, services M L carbon footprint and carbon emission factors, we conduct real-time monitoring and analysis of energy consumption and carbon emission data. We also track s carbon peak and neutrality goals accomplishing process through ’ the nation the analysis of energy structure and industry benchmarking and enable the industry to achieve the high-quality management in energy conservation and carbon reduction. 2021 JD.com Environmental, Social and Governance ReportThematic Report on Climate-related Financial Information Disclosures91 Risk Management JD.com’s Process of Identifying, Assessing and Managing Climate-Related Risks Referring to the sources of climate-related ﬁnancial The key climate risks are further Climate-related risk management screened through literature will be integrated in the SEC information disclosure, and research, combined with the discussion of key issues and ESG ’ s combining the possibility and key expectations of government overall management framework. scope of risk occurrence, the regulators, investors, and Under the supervision and physical and transition risks exchanges for climate response, support of the Board of Directors related to the climate that have a and taking into account the and SEC, the ESG Task Force substantial impact on businesses climate risks that have occurred will coordinate and promote the are preliminarily identiﬁed. or can be foreseen in actual implementation of climate-related business scenarios. risk management in all sub-groups and business lines. Comprehensively Coordinate Enterprise Risk Management Incorporate climate-related risks into JD.com ’ s overall risk management system. Further quantify the actual impact of climate change on operations, governance, and ﬁnance. Risk management framework integration by unifying grading setting and centralizing the management. Metrics and Targets ’ Based on the evaluation of climate risks and opportunities and combining JD.com s overall development strategy and resource endowment, we establish the Group s overall carbon emission reduction strategy. We will continue to apply our technological ’ capabilities and industry inﬂuence to reduce our own operation emissions, facilitate a low-carbon value chain and promote sustainable consumption. We will be dedicated to improving our own climate resilience and sustainable competitiveness, while supporting the fulﬁllment of the nation s carbon peak and neutrality goals as scheduled. ’ 92 Table 5: JD.com’s Metrics and Targets on Issues Related to Climate Change Primary metrics Secondary metrics Metrics description Target setting Establish climate strategy at the Group level ● ● ● Incorporate climate change into the company ’ s overall strategy framework Preliminarily establish strategic framework in 2022 Strengthen climate adaptability and resilience Strengthen competitiveness Establish a climate strategy Identify the value proposition and impetus for JD on climate actions 　　 Cost reduction 　　 Attraction to new type of talents 　　 Promote product and business innovation 　　 Income growth ● Strengthen social recognition Establish and clarify the value proposition and impetus of climate actions by the end of 　　 Support climate public governance and obtain 2023 new business growth scenarios 　　 Improve reputation ● Expand social inﬂuence 　　 Gradually shaping consumers ’ purchasing preferences Quantify the impact of climate action on value proposition Evaluate the company ’ s ﬁnancial performance attributed to climate action based on value proposition and impetus model Establish a value evaluation mechanism and quantify the ﬁnancial impact of climate action by the end of 2023 Based on the preliminary identiﬁcation and sorting Identify climate-related substantial risks of climate-related risks in this report, more key Establish a substantial departments should participate in risk assessment climate-related risk and grading management system in JD.com to rate various risks Quantify the ﬁnancial impact of climate risk Make quantitative statistics for the ﬁnancial impact of by the end of 2023 high-level risks based on risk rating Annual climate risk auditing Annual review and update on risk rating and ﬁnancial impact After 2024, we will conduct an annual review of the actual business exposure to various risks and decide whether to update the rating or not according to the review results Risk rating and tracking Conduct a comprehensive greenhouse gas accounting Targets Determine the boundary and scope of greenhouse gas accounting, and conduct a comprehensive greenhouse In preparation gas accounting Establish the carbon emission reduction targets at the group level Establish and announce the carbon emission reduction targets at the group level In preparation 2021 JD.com Environmental, Social and Governance ReportThematic Report on Climate-related Financial Information Disclosures93 Strengthen climate governance Establish a climate governance framework Establish a climate governance mechanism Low-carbon oﬃce Low-carbon operation Low-carbon data center Promote carbon emission reduction actions in all business scenarios ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Based on the existing ESG governance structure, strengthening the focus and management of climate-related issues Management structure: the Board of Directors and SEC will cooperate in supervision and management, and the ESG Task Force will coordinate the implementation of climate objectives in each sub-group and business lines Segment the Group ’ s carbon emission reduction targets and establish management metrics Clarify the roles and responsibilities among sub-groups and various business lines Establish a climate-related performance evaluation system In 2022, relying on the updated ESG governance structure, the management of climate-related issues will be clariﬁed ● ● ● Start to establish the climate-related management metrics by the end of 2023 Starting from 2024, JD will establish climate-related performance evaluation system Starting from 2022, we will make continuous eﬀorts in relevant talents ’ Strengthen the recruitment and training hiring and training of climate-related talents Strengthen the intelligent operation and maintenance (O&M) management of energy use for oﬃce space By 2030, we will continue to promote Improve the use of energy-saving facilities Encourage remote work Encourage employees ’ green transportation Using natural cold sources Clean energy, including energy recovery and large-scale distributed photovoltaic power generation system Energy storage and cold storage Architectural layout and design for low energy consumption O&M management platform More climate resilience, eﬀective resistance against extreme weather risks the zero-carbon oﬃce by saving energy, improving energy eﬃciency and increasing the proportion of renewable energy ● ● ● ● PUE continues to be improved on the basis of 1.1 Infrastructure energy consumption continues to decrease The total amount of carbon emissions continues to decrease Climate resilience continues to improve Expand the ﬁnancing scale of low-carbon projects Based on the published framework, principles, and processes of green ﬁnance, Identify more projects with low carbon we will continuously identify low-carbon competitiveness and expand the scale of projects and expand the intensity and scale green ﬁnancing of green ﬁnance Low-carbon supply chain Low-carbon transportation ● ● ● Full coverage of new energy vehicles In the coming two to three years, JD.com Fully apply digital smart technology and optimize route, storage, and transportation network planning Optimize transportation structure and will continue to develop and deploy thousands of autonomous delivery vehicles, continuously improve customers experience and service eﬃciency, aiming to achieve 100% new energy for logistics ’ energy eﬃciency vehicles by 2030 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Low-carbon logistics park Low-carbon packaging ’ Suppliers collaborative eﬀort in carbon emission reduction Promote low-carbon consumption Promote industrial low-carbon development Low-carbon supply chain Promote carbon emission reduction actions in all business scenarios Participation of the whole value chain in carbon emission reduction actions Information disclosure Conduct annual climate-related information disclosure 94 ● ’ Xi an Industrial Park has become the ﬁrst “ ’ certiﬁed carbon neutrality industrial park in China s logistics industry, and the ” Suqian Industrial Park is expected to be oﬃcially certiﬁed in 2023 ● As of the end of 2021, JD.com had completed the construction of photovoltaic power systems in the ﬁrst batch of 12 smart industrial parks. We are expected to build a total photovoltaic power generation capacity of 1,000 MW in three years, which can provide green energy for 85% of JD.com smart industrial parks ● ● ● ● Packaging materials will be 100% environment-friendly and renewable by 2030 Motivate more than 80% of upstream brand enterprises to develop eco-friendly packaging By 2025, to promote 50% suppliers of JD Logistics to participate in the Science Based Targets initiative (SBTi) Actively encourage upstream and downstream suppliers to use new energy vehicles Based on massive types of ” commodities, JD.com will continue “ green to expand the supply of low-carbon commodities and the scale of low-carbon Energy substitution: maximize the use of renewable power, such as distributed photovoltaic and eﬃcient energy storage Eﬃcient operation: automatic operation + full electriﬁcation of park energy consumption Online O&M system of the solution to carbon neutrality goals in smart logistics park Promote reusable packaging Packaging reduction Packaging material innovation Application of digital intelligence technology Upstream and downstream collaboration Reusable packaging sharing and recycling public system Lead the suppliers to participate in the establishing and implementing carbon reduction targets Participate in the formulation of national standards for low carbon product Expand the supply of low-carbon products Strengthen low-carbon consumption and consumption market lifestyle campaigns Based on digital smart supply chain infrastructure and digital technology JD will continue to explore our new business capabilities, JD provides intelligent and proﬁt models by technologically solutions for the low-carbon empowering the low-carbon transition of transformation of real economy traditional industrial enterprises enterprises Conduct annual review and disclosure of climate-related risks and opportunities Conduct disclosure and reporting of our climate targets and accomplishment release TCFD reports process Starting from 2022, JD.com will continue to 2021 JD.com Environmental, Social and Governance ReportThematic Report on Climate-related Financial Information Disclosures 95 About the Report Key Performance Note: The tables of 2021 JD.com ’ s key performance in environment, society and suppliers are prepared with reference to the Environmental, Social and Governance Reporting Guide issued by Hong Kong Stock Exchange and GRI guidelines issued by GSSB, and the greenhouse gas accounting boundary of JD.com is deﬁned with reference to The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard developed by WRI and WBCSD. Unless otherwise speciﬁed, the key performance indicators cover the period from January 1st to December 31st, 2021. Table 1: 2021 Environmental Key Performance Deﬁning the GHG Accounting Boundary of JD.com 96 JD.com discloses greenhouse gas emissions in strict accordance with the environmental requirements of HKEX (Table 2). We disclose the greenhouse gas emissions generated by the Group s own operations (Scope 1 and Scope 2). Concurrently, as a new type of real ’ economy enterprise and a leading retail enterprise, we are also aware of the huge carbon emission reduction potential in our complex supply chain. Therefore, to better promote the low-carbon transition of JD.com s supply chain, we further expand our disclosure of ’ Scope 3 emissions for the ﬁrst time, that is, other indirect emissions generated in the value chain other than JD.com s operations. We ’ will also continue to improve our GHG accounting system, include more Scope 3 categories, and fully disclose the emissions from upstream and downstream enterprises of the Group. Table 2: GHG Accounting Boundary of JD.com Category Indicator 19 Data Unit Deﬁnition Business Activity Emissions of Air Pollutants Nitrogen oxide Sulphur oxide Particulate matte Greenhouse Gas (GHG) Emissions20 Direct (Scope 1) GHG emissions Energy indirect (Scope 2) GHG emissions Other Indirect (Scope 3) GHG emissions Waste Produced Total non-hazardous waste Natural gas consumption Diesel fuel consumption 1,630,818.23 Kilogram 1,271.43 Kilogram 128,690.16 Kilogram 238,774.90 271,067.08 1,906,566.66 32,340.85 Ton Ton Ton Ton 428,571.43 Cubic meter 77,155,551.87 Liter Liqueﬁed petroleum gas consumption 1,633,650.00 Kilogram ● ● ● ● ● Scope 1 Scope 2 Operation facilities owned or rented by JD.com, including but not limited to all kinds of fossil fuel emissions consumed by business activities such as heating, cooling, and power supply in oﬃce buildings and staﬀ cafeteria GHG emissions from fuel combustion used in land, air, and water transportation GHG emissions from the operation of equipment and systems Carbon sinks (absorption of greenhouse gases) generated by newly planted trees Towngas consumption 118,615,531.59 Megajoule Group s operation Carbon emissions from electricity purchased for the ’ Use of Resources Charcoal consumption Gasoline consumption Electricity use Water consumption Total packaging material used for ﬁnished products 21 1,038,549.00 Kilogram 1,823,837.71 Liter 443,819,216.26 Kilowatt-hour 5,046,291.19 222,022.85 Ton Ton Packaging materials used per product 22 52.07 g/piece Scope 3 ● 19 20 21 22 For the calculation method of 2021 environmental key performance indicators, reference is made to the Reporting Guidance on Environmental KPIs issued by Hong Kong Stock Exchange. “ Direct (Scope 1) and indirect (Scope 2) GHG emissions construction projects in 2021. Due to the data availability, fossil fuel combustion and electricity use of some investment portfolios in JD.com, as well as emissions from JD Logistics and other sources. other indirect GHG emissions (Scope 3) statistics include administrative oﬃces, logistics and transportation, warehousing, data centers and major statistics in the table include the employee shuttle buses and “ ” ” The total packaging material used for ﬁnished products is provided by JD Logistics, including major logistics packaging consumables such as waybills, express delivery envelope, plastic ﬁlm packaging bags and other minor packaging consumables. The data of �Packaging materials used per product� is provided by JD Logistics, and the calculation method is total packaging material used for ﬁnished products/ total number of packages. Other indirect emissions generated in the value chain outside the Group s internal operations ’ ● ● ● ● ● ● ● ● Fossil fuel combustion from engines, cafeterias, and vehicles in the logistics parks Fugitive emissions of the refrigerants from air conditioners in the oﬃce and cold chain logistics vehicles of JD.com Newly planted trees Electricity use of JD.com in oﬃce buildings, retail stores, logistics parks, data centers, and other operating places, as well as the purchase of electricity for new energy logistics vehicles Goods and services purchased by JD.com (logistics packaging) Upstream and downstream transportation and distribution services of third-party logistics Employee travel and commuting Investment assets operation About the Report2021 JD.com Environmental, Social and Governance Report 97 98 Table 3: 2021 Green Oﬃce Operation Performance Table 4: 2021 Social Key Performance Category Indicator Quantity Unit Category Indicator Quantity Unit Carbon emissions reduced by electronic invoicing 145,694 Carbon emissions reduced by electronic ﬁling Carbon emissions reduced by using new energy employee shuttle buses Carbon emissions reduced by paperless new employee onboarding process 2,602 742.26 52 Ton Ton Ton Ton The mileage of electric vehicle for employee transportation 3,233,289 Kilometer Carbon emissions reduced by using electric vehicles in employee commuting 258.66 Ton Paper documents saved by paperless oﬃce 2,499,999 New Energy and Emission Reduction Performance Joymeeting Online Optimized servers Server optimization Electricity saving Amount saved Carbon emission reduction 1,626,711 29,418,076 327,984 179 470,000 560,000 286.70 Number of documents Number of online meeting sessions Cumulative number of participants Online meeting hours Number of servers Kilowatt-hour RMB Ton Remote work by using VPN 9,213,820 Number of VPN logins Total number of full-time employees Total number of part-time employees Percentage of male employees Percentage of female employees 383,084 43,735 75.39 24.61 Percentage of male employees (excluding front-line employees) 62.25 Percentage of female employees (excluding front-line employees) 37.75 Employment24 Percentage of employees aged under 30 Percentage of employees aged 30-50 Percentage of employees aged above 50 Total number of management staﬀ Number of male management staﬀ Number of female management staﬀ Number of management staﬀ aged under 30 Number of the management staﬀ aged 30-50 Number of the management staﬀ aged above 50 Percentage of female senior management staﬀ 25 Basic salary ratio of full-time male and female employees (excluding front-line employees) Remuneration ratio of full-time male and female employees (excluding front-line employees) Lost days due to work injury Health and Safety Frequency of health and safety training 40.80 58.18 1.02 15,319 13,314 2,005 3,430 11,762 127 25 1.04 1.13 53,227 2 Person Person % % % % % % % Person Person Person Person Person Person % N/A N/A Day Twice a year New energy vehicles used in administrative activities 80 Number of vehicles Percentage of employees covered by health and safety training 100 % Electricity saving in the oﬃce of data center 797,103 Kilowatt-hour Carbon emissions reduction due to other green transformation 23 and technology in data center 1,847.05 Ton Water Use Eﬃciency and Water Saving Performance Water saving in data center Water circulation in the oﬃce of data center 21,408 325 Cubic meter Cubic meter 23 ” For �Carbon emissions reduction due to other green transformation and technology in data center, passages, use of energy-eﬃcient equipment, optimized planning of loading scheme, transformation of intelligent cold water automatic control, etc. energy-saving measures mainly include sealing of cold and hot 24 25 “ ” “ ” total number of full-time employees The non-listed companies under JD.com. The statistics about gender, age and position are only available for full-time employees of the Group. total number of part-time employees in employment data is calculated on the number of employees of listed and and The statistical method of �percentage of female senior management staﬀ � is the number of female senior managers/the total number of senior managers in JD.com, and for the data source, please refer to https://ir.jd.com/zh-hans/management. 2021 JD.com Environmental, Social and Governance ReportAbout the Report 99 100 Category Indicator Quantity Unit JD’s Progress on the United Nations Global Compact Percentage of employees trained Percentage of trained male employees in total male employees 74 76 Percentage of trained female employees in total female employees 70 Percentage of trained management staﬀ in total management staﬀ 97 Percentage of trained general employees (excluding management staﬀ) in total general employees 73 Total training time for all employees Development and Training Total training time for all male employees Total training time for all female employees Average training hours per male employee Average training hours per female employee Average training hours per full-time employee 20,855,445.41 16,678,108.21 4,177,337.21 57.75 44.31 54.44 % % % % % Hour Hour Hour Hour Hour Hour Total number of employees that attended anti-corruption training 319,093 Person Percentage of employees that attended anti-corruption training 26 98.80 Total training hours for women leadership programs 27 ’ s vocational empowerment and 10,910 Product responsibility Number of incidents violating the health and safety regulations of customer-oriented products and services Number of public lawsuits against company or employee for corruption Anti - corruption28 Filed and investigated corruption cases Number of incidents in which employees were ﬁred or punished due to corruption Community investment Charity donation 29 0 0 12 69 1.2 % Hour Case Case Case Case In hundred million yuan ’ The United Nations Global Compact is a voluntary strategic initiative advocated by the United Nations to promote enterprises operation and strategy to meet ten fundamental principles in four areas of human rights, labor, environment, and anti-corruption. JD.com became a member to the United Nations Global Compact in September 2021. We recognize and support the ten principles and incorporate them into our corporate strategy, values, and daily operations. At the same time, we hope to cooperate more closely with the United Nations, especially on the sustainable development goals. Category Principle Corresponding Chapter Human rights Principle 1: businesses should support and respect the protection of internationally proclaimed human rights Principle 2: make sure that they are not complicit in human rights abuses Employment and Labor Standards Principle 3: businesses should uphold the freedom of association and the eﬀective recognition of the right to collective bargaining Internal Communication Mechanism of Employees Labor standard Principle 4: the elimination of all forms of forced and compulsory labor Principle 5: the eﬀective abolition of child labor Employment and Labor Standards Principle 6: the elimination of discrimination in respect of employment and occupation Principle 7: businesses should support a precautionary approach to environmental challenges Green Operation Low-Carbon Supply Chain Thematic Report on Climate-related Financial Information Disclosures ESG Governance Structure Sustainable Development Strategic Framework Identiﬁcation and Management of Environment and Social Risk of Suppliers Thematic Report on Climate-related Financial Information Disclosures Green Operation Low-Carbon Supply Chain Thematic Report on Climate-related Financial Information Disclosures Table 5: 2021 Supplier Management Key Performance Environment Principle 8: undertake initiatives to promote greater environmental responsibility Category Indicator Quantity Unit Supply Chain Management Total number of suppliers 30 4,690 Number of suppliers Principle 9: encourage the development and diﬀusion of environmentally friendly technologies The statistical scope for employees and except the ones who are in pre-dismission, maternity leave and long-term leave. “ percentage of employees that attended the anti-corruption training ” s vocational empowerment and leadership programs Training for women ’ is as of April 2021, according to the online sign-in data of full-time ﬁled and investigated corruption cases number of incidents in which employees were ﬁred or punished due commercial bribery, occupation and employee fraud incidents (excluding JD Logistics and JD Health). has a cumulative training duration of 10,910 hours, with a total of 10,368 participants. ” ” “ and ” 26 27 28 29 is based on the statistics of the 2021 annual work report of JD Foundation. total number of suppliers ” ’ refers to suppliers who received pre-wining bids in the procurement business of JD.com s Procurement and Cost Among the anti-corruption data, the statistics of ’ to corruption are based on JD.com “ s ” “ ” Charity donation “ 30 The statistical scope for Department. “ “ Fight against corruption Principle 10: businesses should work against corruption in all its forms, including extortion and bribery Anti-Corruption and Integrity Compliance 2021 JD.com Environmental, Social and Governance ReportAbout the Report 101 102 United Nations Sustainable Development Goals (SDGs) Response ESG-Related Honors and Social Recognition SDGs Our Actions 2021 ’ ’ “ ’ ” s expressway s vision of rural revitalization, we continue to promote JD.com JD. s Campaign of Rural Revitalization·Featured Products from Thousands of Rural Counties, Benfu By giving full play to our ﬁve core competencies of the supply chain, logistics, ﬁnance, for In response to China Plan. “ service and technology, we join hands with all sectors of society to build an rural revitalization. By taking advantage of the business capabilities of JD Retail, JD Logistics, JD “ Technology, JD Health and Jingxi, we focus on developing the signature projects such as com ” “ Delivery within 24 hours for Thousands of Rural Counties and Towns, system, continue to get rooted in the countryside and share solid infrastructure and innovative technical services, so as to realize the digital-reality integration and empower the revitalization. At the same time, with the help of JD Giving Platform, we have launched a series of ” public welfare activities such as I Will Fulﬁll Your Wish and are committed to improving the rural education in China. Children Books Donation Campaign medical consultation service, and Village Empowerment Action, rural digital smart service Zhen Jing Cai full chain of rural and and ” ” “ ” ” ” “ “ “ ” “ We actively assist disaster relief and epidemic prevention by relying on our digital intelligent social supply chain and long-term accumulated relevant experience. We use the resources of JD Health to deal with the public health security crisis. We empower public healthcare through our science and technology ability, optimize the allocation of medical resources and promote inclusive medical and health services. In addition, we provide a well-functioning welfare guarantee system to ensure the physical and mental health of our employees. ’ We provide employees with an equal, safe, and decent work environment, and support them to obtain fair income, a better workplace, sound welfare and personal development prospects. Meanwhile, we actively support women s economic independence and leadership promotion, women-owned enterprises empowerment and other projects along the whole value chain. At the same time, we support SMEs to obtain more equitable development opportunities, and help them through the the (Co-Create, Empower, Open) plan for the industrial belt, make every eﬀort to accelerate the transformation and upgrading of SMEs in the relevant industrial belt, reduce costs and increase eﬃciency, and promote the development of the real economy. by stimulating their self-motivation. We also introduce Mantianxing Project C.E.O ” “ ” “ Based on cutting-edge technologies such as AI, cloud computing, big data, internet of things, etc., as well as our years of in-depth exploration in the supply chain, we will exert our growth eﬃciency as a new type of real economy enterprise, empower the digital upgrading in various industries by our innovative solutions, help industries reduce costs and increase eﬃciency, and accomplish the low-carbon transformation more eﬃciently. We provide smart solutions for urban planning, transportation, environment, energy, business and security issues through technologies such as big data, AI and cloud computing. We promote the eﬃciency of public governance through our social supply chain infrastructure. We put our “ Intelligent Mobile Warehouse Nanchong high-speed railway to improve the accuracy and eﬃciency of its procurement management. In addition, JD Health brings its supply chain and healthcare services to rural areas and enhances the healthcare capabilities in rural communities. into use in the construction project of Hanzhong-Bazhong- ” Fortune 2021: Fortune Global 500 list, ranking 59 th . ● ’ “ Strategy Implementation and Thinking of JD.com The ’ China s top 500 private enterprises, ranking the second. China Enterprise Evaluation Association “ 2021 Top 100 New Exerting the Advantages as A New Type of Real Economy Enterprise won the First Prize of 2021 Outstanding Achievements of Chinese Enterprise Reform and “ ” ” type of Real economy enterprises List, ranked second. Development granted by China Enterprise Reform & ● ● ● ● ● ● ● ” ” “ Ranked among the ” Consumer Brands. Better Life 2021 - Top Ten of Chinese “ ● Won Corporate ESG Best Practices of the Year, ” 2021 ESG Pioneer 60. ● “ All-chain carbon reduction measures selected by Global “ Best Enterprises in Achieving Compact Network China as the Sustainable Development Goals in 2021 (Carbon Peak and Carbon Neutralization). ” ● “ Shortlisted in Carbon Neutral Best Practices ” rewarded by People.cn, All-China Environment Federation, and Center for Environmental Education and Communication of Ministry of Ecology and Environment. Participated in UN Climate Change Conference (COP 26) in 2021 as a guest speaker. “ Won the Annual Recommended Case of 2021 People ’ s Corporate Social Responsibility-Green Development Award ” sponsored by People.cn. Beijing Advanced Company for Poverty Recognized as “ ” Alleviation and Cooperation. 2022 Development Society. ● ● Forbes: 2021 World ’ s Best Employer, ranking third among Chinese enterprises. Shortlisted in 2021 overall ranking of China ’ s most attractive employers, ranking among the top three in the Internet industry. ● “ ” Large-scale robot warehouse scheduling algorithm won the highest industrial application award in the global research and management scientiﬁc community - Franz Edelman “ ” Outstanding Achievement Award. ● ● ● Became the ﬁrst logistics enterprise in China awarded with the Data Management Capability Maturity Model (DCMM) Level 4 certiﬁcation. ” Won the First Prize of Progress Award. ” “ Beijing Science and Technology Approved by the “ 2030 Megaproject ” - New Generation Artiﬁcial Intelligence. With our commercial operation, supply chain management and technological innovation, we strive to achieve a low carbon and environmentally friendly business model, promote sustainable and responsible consumption, and continuously deepen the environmental protection strategy “ of JD.com. Based on the green and eﬃcient supply chain, we have launched the Green Stream Initiative, of packaging, warehousing and transportation, and are committed to establishing an iconic business ecology of sustainable development in the global society. implemented low-carbon and energy-saving practices in our supply chain in terms ” We are fully concerned with the impact of our operations on stakeholders, respond to the expectations of multiple stakeholders, and continue to work for sustainable value creation through dialogue and cooperation. Relying on our solid infrastructure, eﬃcient digital intelligent social supply chain and innovative technology service capabilities, while maintaining our own sustainable development, we persistently open the new growth space for millions of our partners, empower the high-quality development of the real economy and create more value for the society. ● ● JD.com is ranked on the FORTUNE 2022 World ’ s Most ● JD.com “ Asia No.1 ” ’ Xi an Intelligent Industrial Park has Admired Companies list at No.6 in the Internet Services and obtained the carbon neutrality certiﬁcation issued by Beijing Retailing Category. Particularly, JD ranked the ﬁrst among Green Exchange and Centre Testing International (CTI). Chinese enterprises in terms of social responsibility index. “ The second China Brand Power Festival, “ of Hope of Domestic Products. ” ” the top ten brands 2021 JD.com Environmental, Social and Governance ReportAbout the Report 103 HKEX Content Index 104 ESG Indicator Reporting Section Supplier Management Introduction Statement from the board ESG governance system Report Proﬁle Statement from the Board ESG Governance Structure Corporate social responsibility strategy Sustainable Development Strategic Framework Materiality assessment and stakeholder engagement Materiality Assessment and Stakeholder Engagement Environment General disclosure of emissions Low-Carbon Supply Chain Types of emissions and respective emissions data Table 1: 2021 Environmental Key Performance Direct (Scope 1) and “ energy indirect ” Total hazardous waste produced (Scope 2) GHG emissions Table 1: 2021 Environmental Key Performance 31 N/A Total non-hazardous waste produced Table 1: 2021 Environmental Key Performance Description of emission target(s) set, and steps taken to achieve them Thematic Report on Climate-related Financial Information Disclosures General disclosure of resources used Low-Carbon Supply Chain Direct and/or indirect energy consumption by type (e.g., electricity, gas or oil) in total Table 1: 2021 Environmental Key Performance Performance water consumption in total Table 1: 2021 Environmental Key Performance Total packaging material used for ﬁnished products (in tons) and, if applicable, with reference to per unit produced Table 1: 2021 Environmental Key Performance Employment and Training General disclosure of employment Human Resource Compliance Management Total workforce by gender and age group Table 4: 2021 Social Key Performance Disclosure of health and safety Table 4: 2021 Social Key Performance Number and rate of work-related fatalities that occurred in each of the past three years (including the reporting year) 32 N/A Description of occupational health and safety measures adopted, and how they are implemented and monitored Occupational Health and Safety General disclosure of development and training Anti-Corruption and Integrity Compliance The percentage of employees trained Table 4: 2021 Social Key Performance The average training hours completed per employee by gender and employee category Table 4: 2021 Social Key Performance General disclosure of labor standards Employment and Labor Standards Description of measures to review employment practices to avoid child and forced labor Employment and Labor Standards General disclosure of supply chain management Supplier Admittance and Compliance Management Number of suppliers Table 5: 2021 Supplier Management Key Performance Description of practices relating to engaging suppliers, and how they are implemented and monitored Supplier Admittance and Compliance Management Description of practices used to identify environmental and social risks along the supply chain, and how they are implemented and monitored Identiﬁcation and Management of Environmental and Social Risks of Suppliers Description of practices to promote green consumption and advocate green products JD.com Single Day Grand Promotion Leads Sustainable Consumption Product Responsibility General disclosure of product responsibility Product Responsibility and Content Management Description of practices to respond to complaints and problems Respond to Complaints, Enquires and Requests Description of practices to protect intellectual property Intellectual Property Protection Description of quality assurance process All-Round Product Quality and Safety Guarantee Description of consumer data protection and privacy policies, and how they are implemented and monitored Information Security Compliance Anti-corruption General disclosure of anti-corruption Anti-Corruption and Integrity Compliance Filed and investigated corruption cases in the reporting period Table 4: 2021 Social Key Performance Description of preventive measures and whistle blowing procedures, and how they are implemented and monitored Anti-Corruption and Integrity Compliance Description of anti-corruption training provided to staﬀ Anti-Corruption and Integrity Compliance Community Investment General disclosure of community investment Public Welfare Concept and Policy Focus areas of contribution The Focus Area of Philanthropic Eﬀorts Resources contributed (e.g., Money or time) to the focus area Table 4: 2021 Social Key Performance 31 “ 32 Total amount of hazardous wastes generated cannot be disclosed temporarily because of incomplete data. “ ” The number and rate of people who died at work in the past three years (including the reporting year) incomplete data. ” cannot be disclosed for the time being because of 2021 JD.com Environmental, Social and Governance ReportAbout the Report 105 GRI Standards Content Index Number Category Reporting Section 101 102 103 201 202 203 204 205 206 301 302 303 304 305 Foundation Report Proﬁle General disclosure Overview Management Approach ESG Governance Structure Materiality Assessment and Stakeholder Engagement Sustainable Development Strategic Framework Compliance Governance to Achieve More Sustainable and Steady Development and Growth Thematic Report on Climate-related Financial Information Disclosures Economic Performance Message from Chairman of Board of Directors Market Presence Employee Beneﬁts Survival Safeguard Employee Training and Talent Development Indirect Economic Impacts Promoting High-quality Development Promote Inclusive Development of the Society. Procurement Practices Supplier Management Green Packaging All-round Product Quality and Safety Guarantee Thematic Report on Climate-related Financial Information Disclosures Anti-corruption Anti-Corruption and Integrity Compliance Anti-competitive Behavior Competition Compliance Materials Green Packaging Energy Safeguarding the Natural Environment Thematic Report on Climate-related Financial Information Disclosures Table 1: 2021 Environmental Key Performance Table 3: 2021 Green Oﬃce Operation Performance Water and Eﬄuents Green Warehousing Green Oﬃce Biodiversity Emissions Table 1: 2021 Environmental Key Performance Safeguarding the Natural Environment Animal Protection Green Operation Green Transportation JD.com Single Day Grand Promotion Leads Sustainable Consumption Thematic Report on Climate-related Financial Information Disclosures Table 1: 2021 Environmental Key Performance Table 3: 2021 Green Oﬃce Operation Performance 106 306 307 308 401 402 403 404 405 406 407 408 409 410 412 413 414 415 416 417 418 419 Sewage and wastes Green Warehousing Table 1: 2021 Environmental Key Performance Environmental Compliance Identiﬁcation and Management of Environmental and Social Risks of Suppliers Thematic Report on Climate-related Financial Information Disclosures Supplier Environmental Identiﬁcation and Management of Environmental and Social Risks of Suppliers Employment Employee Beneﬁts High-quality Employment Labor/Management Relations Occupational Health and Safety Table 4: 2021 Social Key Performance Human Resource Compliance Management Internal Communication Mechanism of Employees Employment and Labor Standards Internal Communication Mechanism of Employees Occupational Health and Safety Table 4: 2021 Social Key Performance Training and Education Employee Training and Talent Development Table 4: 2021 Social Key Performance Diversity and Equal Opportunity Cultivating Talents Table 4: 2021 Social Key Performance Non-discrimination Employment and Labor Standards Freedom of Association and Collective Bargaining Internal Communication Mechanism of Employees Child Labor Employment and Labor Standards Forced or Compulsory Labor Employment and Labor Standards Security Practices Occupational Health and Safety Human Rights Assessment Employment and Labor Standards Local Communities Promoting Inclusive Development of The Society Supplier Social Assessment Supplier Management Public Policy Public Welfare Concept and Company Policy Customer Health and Safety All-Round Product Quality and Safety Guarantee Marketing and Labelling All-Round Product Quality and Safety Guarantee Content Speciﬁcation and Management of Marketing Customer Privacy Information Security Compliance Customer Privacy and Data Security Socioeconomic Compliance Compliance Governance to Achieve More Sustainable and Steady Development and Growth 2021 JD.com Environmental, Social and Governance ReportAbout the Report107 External Veriﬁcation Statement 108 ASSURANCE STATEMENT CONCLUSIONS, FINDINGS AND RECOMMENDATIONS We believe that JD.com has chosen an appropriate ESG reporting guide, and information contained within the Report can be used by its stakeholders. SGS-CSTC STANDARDS TECHNICAL SERVICES CO., LTD. SHANGHAI BRANCH’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE 2021 JD.COM ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT NATURE AND SCOPE OF THE ASSURANCE/VERIFICATION SGS-CSTC STANDARDS TECHNICAL SERVICES CO., LTD. SHANGHAI BRANCH (thereafter as “SGS”) was commissioned by JD.com to conduct independent assurance of the 2021 JD.com Environmental, Social and Governance Report ((thereafter as “ESG Report”). Based on the SGS Sustainability Report Assurance methodology, SGS performed the remote assurance of the management methodology and data related to the HKEX requirements contained within this report at JD.com Headquarters, No. 18 Kechuang 11 Street, Beijing Economic-Technological Development Area, Beijing City, P. R. China. Data and information of other sites were not assured in this assurance scope. The information in the 2021 JD.com ESG Report and its presentation are the responsibility of the board and related functions. SGS has not been involved in the preparation of any of the material included in the 2021 ESG Report. Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of verification with the intention to inform all of JD.com’s stakeholders. The SGS protocols are based upon internationally recognized guidance, including the reporting principles contained within the HKEX listing rules appendix 27 “Environmental, Social and Governance Reporting Guide” and the guidance on levels of assurance contained within the AA1000 series of standards and guidance for Assurance Providers. This report has been assured at a moderate level of scrutiny using our protocols for: • • evaluation of content veracity; evaluation of the report conformity against the HKEX listing rules appendix 27 “Environmental, Social and Governance Reporting Guide”. In our opinion, the 2021 ESG Report is presented in accordance with the reporting rules and the KPIs disclosures of the HKEX listing rules appendix 27 “Environmental, Social and Governance Reporting Guide”. Reporting Rules Materiality JD.com conducted the methodology for ESG issues materiality research and analysis with documentation, via third-party survey and internal analysis to report the ESG materiality issues of concern by stakeholders, which could meet the materiality principle requirement. Quantitative JD.com planned the methodology for management approach and performed the statistics and analysis for KPIs, some KPIs, referred to the criterions and international general regulations, and reported the disclosures’ impact and purpose. Some comparative yearly data could better help stakeholders to evaluate its management system’s effectiveness and make decisions. Balance JD.com presented the balance reporting rule in the ESG report and reported environmental, social and governance issues truthfully. Consistency JD.com planned the disclosure methodologies with consistency for report content and data statistics at all levels in the company. In addition, remarks and interpretations were marked in the ESG report to help stakeholders make a clear comparison. Limitations of assurance Due to the impact of the epidemic during audit duration, the assurance team did not verify the original data and information in the organization with traceability, and included no further comments for actual case study in the ESG report. The assurance process only involved interviews with the heads of relevant departments and certain employees and consultation with relevant documents, and didn’t involve the external stakeholders. As the financial information in the 2021 financial report has passed the independent assurance, this report assurance does not contain traceability and assurance of such financial information. The assurance comprised a combination of pre-assurance research, interviews with relevant employees, documentation and record review, and validation with external bodies and/or stakeholders where relevant. Signed: Financial data drawn directly from independently audited financial accounts has not been checked back to its source as part of this assurance process. STATEMENT OF INDEPENDENCE AND COMPETENCE The SGS Group of companies is the world leader in inspection, testing and verification, operating more than 2,600 affiliates in more than 140 countries. SGS affirms our independence from JD.com being free from bias and conflicts of interest with the organization, its subsidiaries, and stakeholders. The assurance team was assembled based on their knowledge, experience, and qualifications for this assignment, and comprised auditors registered with CSR Lead Assuror, CCAA Registered ISO 9001, ISO 14001 Auditor, and ISO 45001 Auditor. VERIFICATION/ ASSURANCE OPINION On the basis of the methodology described and the verification work performed, we are satisfied that the information and data contained within the 2021 ESG Report verified are reliable and provide a fair and balanced representation of JD.com’s sustainability activities in 2021. For and on behalf of SGS-CSTC David XIN Director Knowledge Department 16/F Century Yuhui Mansion, No. 73, Fucheng Road, Beijing, China April 13, 2022 About the Report2021 JD.com Environmental, Social and Governance Report 109 Environmental considerations for publication of the report Paper: The report is printed on eco-friendly paper. Printing Ink: The report is printed with eco-friendly ink to reduce air pollution. JD.com Oﬃcial ESG Webpage 2021 JD.com Environmental, Social and Governance Report

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